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`Fiskal' phaseout fine in Jakarta, but hits snags across the country
While the exit tax exemption procedure ran smoothly on the first days of its implementation at Soekarno-Hatta International Airport, many travelers at other gateways were forced to cancel their trips after failing to show their tax numbers (NPWP)
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While the exit tax exemption procedure ran smoothly on the first days of its implementation at Soekarno-Hatta International Airport, many travelers at other gateways were forced to cancel their trips after failing to show their tax numbers (NPWP).
"On the first day of the fiskal-free policy (for registered taxpayers) implementation at the airport, 1,312 out of 4,000 travelers going overseas got the exemption," Agus Purnomo Adi, head of East Jakarta tax office, said Friday at the airport.
He said tax officials faced minimal problems in implementing the new policy, with most travelers surprised at the exemption.
"Many brought money to pay the exit tax, but when they arrived at this office they were told they didn't have to pay if they had an NPWP," he said.
However, Antara reported the number of people crossing from Batam to Singapore dropped by half on Thursday.
"Many passengers, mostly Batam residents, canceled their trips because they didn't have an NPWP," said an official from ferry operator Batam Fast at the Sekupang International Ferry Terminal.
From Jan. 1, those leaving the country by sea must pay Rp 1 million in exit tax, unless they have an NPWP or are below the age of 21. Previously, Batam residents traveling to Singapore or Malaysia by ferry did not have to pay the exit tax.
Under the new tax policy, airline passengers must pay Rp 2.5 million.
The tax office at Polonia Airport in Medan, North Sumatra, postponed the implementation of the policy until Jan. 15 to allow travelers time to apply for an NPWP.
"We're allowing passengers without NPWP to board their flights without having to pay the exit tax, but we require them to sign a notarized letter stating they will apply for an NPWP as soon as they return to the country," said airport tax office head Harry Gumelar.
The new policy met protests from would-be passengers at Tanjung Balai Karimun International Port, Riau Islands, who said tax officials had failed to do publicize the policy before it took effect.
Ela, 25, said she had arranged for an NPWP but the tax office had not yet processed it.
"I couldn't afford it... I had to cancel my trip," she said.
Sakdun, head of the local tax office, admitted his office had been overwhelmed with NPWP applications.
"We've been working overtime since Dec. 20," he said.
The unusually quiet port, serving Singapore and Malaysia, had ferry operators concerned on Thursday.
"Passenger numbers dropped by 80 percent from normal. If this goes on, we could lose business," said Hasan from PT Cuaca Marina Cruise.
The operator runs 12 trips to Malaysia and three to Singapore every day, carrying at least 40 passengers per trip. On Thursday, however, that number dropped to between seven and 20.
