SMS: The increase of exit tax

Mon, 01/05/2009 11:05 AM  |  Reader's Forum

Your comments on airport exit taxes which as of Jan. 1 increased to Rp 2.5 million (US$227) per person -- except for those with a tax number (NPWP) who are now exempt.

I see there is still a gap in the information about the exit taxes. What about expatriates who are living in Indonesia with a retirement visa?

We are allowed to stay up to a year without leaving the country, do not have any income from Indonesia, and so cannot be registered tax payers.

So far we have had to pay Rp 1 million if we exit. To pay Rp 2.5 million seems excessive.
BHAGAWATI MORRIS
Kerobokan, Bali

What is the Indonesian government trying to do with this country? They stop tourists coming with that pornography law and now stop people going out by raising the tax!!

What about for all the housewives that have no NPWP? Do they have to pay that ridiculous amount to visit their kids who are studying overseas or even when they take their kids for holiday??

This also makes me wonder, do the President and Vice President's wives also have to pay this amount when they go on holiday overseas??
IRENE
Jakarta

I have lived in Indonesia for around eight years now, and started looking at The Jakarta Post around four years ago. This new airport exit tax fee law is one of many stupid laws in this country.

It will help only the rich and make sure that the poor will stay poor, but that is the Indonesian culture.
SOSBUD
Jakarta

The exit tax which was introduced by a very "creative" dictator many years ago, still remains unchallenged in a democracy. It was even increased by 150 percent, as of Jan. 1!

It reminds us of the dark Middle Ages when robber barons and street robbers took whatever they could -- not a modern society where human beings (rich or poor) are free to leave their country whenever they want.

I pay a lot for my KITAS every year, a lot for an exit-re-entry permit -- why must I and my Indonesian wife (who has no income at all) pay another Rp 2.5 million when we want to visit my family in Europe?!

Was it obvious where the billions of rupiah drained away to during the aforementioned dictatorship? It proved to me -- as a former lecturer of economics -- that it is impossible to find any exit tax item in the state budgets or annual balances over the last few years.

If you go to www.pajak.go.id you will find heart-breaking appeals to register for a Tax Number (NPWP), helping to get out of the global economic crisis which also burdens Indonesia.

They promise, for those who can show an NPWP when leaving the country, they will be exempted from paying the exit tax.

We will soon see if this is just another of umpteenth broken promise.

Facit and pious hope for 2009: Be more inventive in erasing corruption than squeezing your people.
MICHAEL BEER
Amlapura, Bali

It seems to me this is a good thing. I mean, I disagree with the fiscal tax and believe it should be abolished, but this is the next best thing. In theory, only those who travel abroad and are not registered tax payers will have to pay in increased fiscal.

If I understand correctly, registered tax payers who are residents in Indonesia will no longer pay fiscal tax. And, in 2011 the tax will be abolished altogether. (I'll believe it when I see it!!) But for now, if you are a legal income tax payer, the fiscal is done.

As for Indonesians residing abroad, if they have their overseas address recorded in their passport at the Indonesian Embassy in the country where they are working/living they get four fiscal-free trips every calendar year.

This has already been true for many years. I feel sorry for maids working abroad who do not know this -- their puny salaries wasted on fiscal. It comes down to a few things: Will Indonesians pay their tax? Which costs more, fiscal or income tax? Can an NPWP card be forged?
LOREN
Jakarta

Will the Tax Office also exempt citizens between 60 and 70 years of age and Indonesians who want to do research overseas?
AGUS SATOTO
Jakarta

 

This new regulation is not clear. Is it only for people without an NPWP? How much does a person with an NPWP have to pay?
SYAHRUL LUDDIN
Vienna, Austria

Just ridiculous! Now, I will have to stop some of my business travels to other countries, and of course I won't be able to take my family. I guess that's the goal of the Indonesian government, to stop people from leaving. I feel bad for my Indonesian friends for sure.
JIM S.
Jakarta

I am a young Iranian executive and just finished reading an article in The Jakarta Post.

I'd like to say that virtually all governments of the world encourage their young people or young generation to travel abroad not only seeking jobs but knowledge and ideas which will one day be brought home for the benefit of the people and the country.

But the decision of your government to increase the exit tax by more than double will only make the younger generation and young business people more restricted to travel and know less about what is going on outside their home country.

How can your country improve and prosper if you have such regulations and laws?

Honestly, I have been to your country a few times and I find there are many laws and regulations so very stupid and without common sense.

I believe such laws and regulations only benefit the politicians and filthy rich business people. May God forgive your political leaders that are more interested in their personal wealth than the welfare of ordinary citizens.
ALI KHARAZI
Teheran

I am from Italy and have been traveling regularly in this region. I noticed that the Malaysian, Singaporean and Thai governments have encouraged their citizens to go abroad and earn a living without any form of restrictions unless of course one has a criminal record.

The decision made by your government to increase exit taxes is a very immature decision. To be more simple, a very stupid move indeed!

This shows your politicians make decisions based on emotions rather than common sense. The whole world is laughing at your government with its decisions that do not help the people, especially the poor.
DAMIJAN BASIN
Roma

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