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Import tax on alcohol jumps to 150%
As of today, import duties on alcoholic drinks are set at 150 percent of their market price, higher than under previous arrangements
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As of today, import duties on alcoholic drinks are set at 150 percent of their market price, higher than under previous arrangements.
In a regulation issued on July 9, the Finance Ministry stated that any beverages with alcohol content of less than 80 percent, such as brandy, whisky, vodka, gin and rum, will be charged import duties at 150 percent.
'The regulation is effective 14 days after it is issued,' a statement from the Finance Ministry says.
Under the previous regulation, import duties were based on volume, at around Rp 125,000 (US$9.31) per liter. Under the current regulation, duties will refer to price value.
For example, a liter of whisky with a market price of Rp 1 million cost 1,125,000 under the previous regulation, while under the new rule, the price will swell to Rp 2.5 million.
The new regulation also targets beverages with alcohol content of between 15 and 25 percent, such as wine. However, import duties for wine are set at a lower rate of 90 percent of market price. (ika)(++++)
