Indonesian importers and couriers have been warned not to under-invoice purchases or split shipments to avoid paying tax now the value of tax free imported goods has been slashed.
New regulations set the maximum value of non-taxable imported goods at US$3 per shipment, much lower than the current US$75 limit.
Lighter tax burden
Under the new regulations that take effect on 30 January, import duty at 7.5 per cent and value-added tax at 10 per cent will be imposed on taxable imported goods.
Importers previously paid 10 per cent income tax in addition to the import duty and value-added tax so total duty and taxes under the new regulations will be 17.5 per cent instead 27.5 per cent under the old rules.
But the international and inter-institutional customs director of the Directorate General of Customs and Excise (DJBC), Syarif Hidayat, wants individuals not businesses to benefit from these lower rates and has issued a stern warning to importers and couriers.
In a written statement he called on them to comply with the rules and refrain from splitting shipments of goods or under-invoicing imported goods.
“With the new rules, we hope that import duty exemption can be truly utilised for personal use,” he said.
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