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Jakarta Post

Govt to end VAT, luxury tax and duties in FTZs

  • Mustaqim Adamrah

    The Jakarta Post

Singapore   /   Mon, October 27 2008   /  11:33 am

The government will soon abolish value-added tax (VAT), luxury tax and import duties on production goods in free trade zones (FTZs) in the Riau Islands province in a bid to stimulate businesses. The provincial administration and the customs and excise directorate general have finalized a draft regulation that will eliminate these taxes and duties in these areas, according to Riau Islands governor Ismeth Abdullah. The draft regulation, he said, would henceforth be based on the 2007 law on FTZs, which stipulates that no VAT, luxury tax or import duties on production goods are applied in FTZs. "We (the administration), along with the customs and excise directorate general, just finalized the idea (of the draft regulation) this (Thursday) morning," Ismeth told The Jakarta Post recently. Customs and excise director general Anwar Suprijadi would submi...