Government to increase import tax for 1,147 consumer goods
Stefanno Reinard Sulaiman
The Jakarta Post
The government announced on Wednesday a new finance regulation that would impose a higher tax on 1,147 imported consumer goods that were deemed non-essential or had domestic equivalents.
Finance Minister Sri Mulyani Indrawati said in Jakarta on Wednesday that the regulation aimed to control imports of consumer goods that had little impact on productive business activities.
The new regulation, which is to replace Ministerial Regulation No. 34/2017 next week, imposes an import tax of 10 percent from the previous from 2.5 percent on imported personal care products like shampoo, soap and cosmetics, along with 215 other consumer goods.
The regulation also raises the import tax from 7.5 to 10 percent for 210 goods, including luxury items like supercars. Import tax of 7.5 percent, a hike from the current 2.5 percent, is to be imposed on 719 other imported goods and products, including audio speakers and swimwear.
Meanwhile, the new regulation maintains a tax of 2.5 percent for 57 imported goods deemed essential to supporting domestic industries.
The ministry’s customs and excise directorate general recorded a 16.46 percent year-on-year (yoy) increase to $15.77 billion in consumer goods imports for August.
The government’s move to curb imports is part of a concerted effort to reduce the swollen current account deficit, which has been deemed one of the major triggers of the negative market sentiment that has contributed to the steep rupiah depreciation. (bbn)
- Boeing ‘confident’ in 737 MAX safety despite aircraft flaw
- 'Waria' told to leave their home in Jakarta amid anti-LGBT campaign
- Christian school rumor leads to closure of vocational academy in Batam
- Pence says US to partner in Papua New Guinea military base
- Here are 10 of the most populated cities in the world
- US politician stands to win election by one vote
- Sexual harassment victim ordered to start prison sentence next week
- Govt looks to private employees to fill public jobs after 90 percent of applican...
- 'Moral panic' targets Indonesia's LGBT community
- Number of missing in California fire soars past 1,000 as Trump set to visit