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.

Businesses warned

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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