Import of Finished Goods and Consumption Includes Taxes of 10 Percent
By : Ridwan And Aldi Firhand. A | Monday, September 03 2018 - 23:28 IWST
Imported Rice (Photo Dok Industry.co.id)
INDUSTRY.co.id - Jakarta, the Government plans to set the highest import tax rate (PPh) of 10 percent on downstream products, such as finished goods and consumption.
Meanwhile, raw material and auxiliary commodities are subject to lower import tariffs, namely 2.5 percent.
"We are reviewing some HS codes. So, for raw and auxiliary materials, we choose a lower one. For goods between 7.5 percent and 10 percent downstream products," said Minister of Industry Airlangga Hartarto at the Coordinating Ministry for Economic Affairs, Monday (3 / 9/2018).
Nevertheless, the certainty of tariffs based on the HS commodity code is still being discussed by the government and will be finalized this month so that the policy can be implemented immediately.
"The aim is to immediately have an impact on the recovery of the current account deficit," he said.
Previously, the policy of imposing import PPh tariffs on imported commodities was actually stated in Minister of Finance Regulation (PMK) Number 34 of 2017. However, in order to restore the current account deficit, the list of imported commodities was reviewed.
Finance Minister Sri Mulyani Indrawati previously also ensured that imported commodities that imposed import PPh rates were chosen by considering several aspects outside the type of goods.
That consideration, namely the ability of Micro, Small and Medium Enterprises (MSMEs) to produce these goods, the creation of a multiplier effect, and the ability of domestic production.