The Jakarta Post
The government has been urged to scrap the import tax for aircraft components to incentivize airlines to adhere to a request that they cut airfares for domestic flights.
PT Garuda Maintenance Facility AeroAsia (GMF) acting president director Tazar Marta Kurniawan said that, of the total 300 spare parts that were imported, the government imposed the import tax on 275 of them.
“Only 25 of the aircraft components were categorized under the HS code, meaning they are exempt from paying the import tax,” Tazar said in Jakarta on Tuesday as quoted by tempo.co.
The import tax is either 5, 10 or 20 percent for the 275 components.
On June 20, the government reiterated its call to domestic airlines, particularly low-cost carriers, to lower airfares for certain times and destinations. The government also called on aviation stakeholders to provide airlines with incentives.
The plan to provide incentives through the elimination of the import tax for aircraft components was included in an economic package introduced by the administration of President Joko “Jokowi" Widodo.
Tazar said GMF, a subsidiary of flag carrier Garuda Indonesia, planned to discuss the elimination of the import tax with the government. (bbn)