TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Govt told to scrap import tax for all aircraft components

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, June 26, 2019   /   12:26 pm
Govt told to scrap import tax for all aircraft components Technicians from Garuda Maintenance Facility Aero Asia inspect a Garuda Indonesia plane at a Soekarno-Hatta International Airport hangar on July 19, 2017. (kompas.com/Andri Donnal Putera)

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)