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Your letters: All-out efforts to collect funds
In its all-out effort to seek as much funding as possible, the Finance Ministry has done the unexpected
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n its all-out effort to seek as much funding as possible, the Finance Ministry has done the unexpected.
Yesterday, it tried to allow foreigners to buy properties in Indonesia valued at US$375K and above; and today it has attempted to increase the excise duty on alcohol nationwide. What sector is next on the ministry's list?
The imposition of the tax on alcohol (e.g. brandy, whisky, vodka, gin and rum) will only be detrimental to the tourism industry ' considering that the Govt. has promised to boost the number of visitors into the country with a free visa on arrival scheme, the establishment of a Garuda airline route from Shenzhen to Bali and the employment of 2,000 tour guides who are conversant in
Mandarin.
Next, to enhance the tourism industry, the Finance Ministry has agreed to increase the Tourism Ministry's budget to Rp 3.9 trillion (US$289 million) from Rp 1.2 trillion. From this sum, 2.4 trillion is earmarked for the promotion of tourism while 1.5 trillion is allocated for the 'Creative Economy Sector' (CES), something unclear to tax payers.
The National Development Planning Board (Bappenas) estimated that the tourism industry may generate up to Rp 4 trillion per year. This dream has just vanished due to today's taxation on alcohol. On the other hand, could it be that the Ministry of Finance is using this method as a way to recover the intended expenditure of Rp 1.5 trillion on the CES?
Luwanto
Jakarta
