Increase in Import PPH Does Not Violate WTO Rules

By : Herry Barus And Aldo Bella Putra | Thursday, September 06 2018 - 13:30 IWST

Menteri Perdagangan Enggartiasto Lukita
Menteri Perdagangan Enggartiasto Lukita

INDUSTRY.co.id - Jakarta - The Minister of Trade Enggartiasto Lukita stressed that the policy of raising import tax rates (PPh) on 1,147 tariff posts would not violate the rules of the world trade organization or the World Trade Organization (WTO).

"There is no need to worry, this Article 22 Income Tax does not violate the WTO and can be credited. The type we question and there will be no shortage," Minister Enggar said at a press conference at the Ministry of Finance in Jakarta on Wednesday (05/09/2018)

Enggar said that domestically produced consumer goods will not suffer from a shortage of stocks with the enactment of the import PPh tariff adjustment to 1,147 commodities as a policy to control the import of consumer goods.

Likewise, the Director General of Foreign Trade of the Ministry of Trade, Okay Nurwan, said that the policy to increase Article 22 PPh rates were indeed applied to imported goods and goods produced domestically.

However, for imported goods the tax payment can be credited as part of the payable PPh payment at the end of the tax year.

Increase in tariffs on Article 22 Income Tax, which is imposed on certain business entities, both government and private, which conduct trade activities in export, import and re-import.

According to Okay, policies that can violate the rules even cause sanctions from the WTO are discriminatory treatment of imported goods. Therefore, this PPh 22 tariff adjustment is not to worry because there are no WTO rules violated by the government.

"If we apply imported products or domestic products are differentiated, then it is discriminatory," said Oke.

As is well known, the Government officially implemented a policy to control the import of consumer goods through raising the import tax rate (PPh) on 1,147 tariff posts as a strategy to overcome the current account deficit.

News Comment

Today's Industry

Widodo Sucipto, President Director of PT Hydrotech Metal Indonesia.

Selasa, 19 Oktober 2021 - 15:47 WIB

Hydrotech Metal are Getting Closer to Canada Securities Exchange

PT Hydrotech Metal Indonesia are getting closer to Canada Securities Exchange, after the signing of Share Exchange Agreement with a Canadian company recently. The signing was done virtually…

President Joko Widodo and Cabinet Secretary Pramono Anung at Kompas Bajo, Puncak Waringin, Thursday (14/10) afternoon. (Photo by: BPMI/Laily Rachev)

Jumat, 15 Oktober 2021 - 21:32 WIB

President Jokowi Visits Kompas Bajo Creative Hub

Ending his working visit in East Nusa Tenggara Province, President Joko “Jokowi” Widodo and First Lady Ibu Iriana on Thursday (14/10) afternoon took a walk to Kompas Bajo which is located…

President Jokowi inspects mangrove forest at Ngurah Rai Grand Forest Park in Bali province (08/10) (Photo by: Presidential Secretariat’s Press, Media, and Information Bureau/Laily)

Jumat, 08 Oktober 2021 - 23:10 WIB

President Jokowi: Bali’s Mangrove Rehabilitation Model to Become Pilot for Other Provinces

President Joko “Jokowi” Widodo on Friday (08/10) expressed desire that mangrove rehabilitation model at Bali’s Ngurah Rai Grand Forest Park is also to be adopted in other provinces in…

President Jokowi and First Lady Iriana Joko Widodo inspect mangrove forest in Ngurah Rai Forest Park, Bali province, Friday (08/10). (Photo by: BPMI of Presidential Secretariat/Laily Rachev)

Jumat, 08 Oktober 2021 - 22:45 WIB

President Jokowi Inspects Mangrove Forest in Bali

President Joko “Jokowi” Widodo and First Lady Iriana Joko Widodo, Friday (08/10), inspected mangrove forest in Ngurah Rai Forest Park, Bali province.

Minister of Finance Sri Mulyani Indrawati (Photo by: PR of Cabinet Secretariat)

Jumat, 08 Oktober 2021 - 22:05 WIB

Gov’t to Optimize Fair State Revenue through Harmonized Taxation Law, Minister Says

Law on Harmonized Taxation (UU HPP) is one of the milestones of Indonesia’s tax reforms, which is part of structural reforms to realize an Advanced Indonesia through a just, proper, and accountable…