Indonesia'S Tax Policy Tilts The Footwear Industry

Indonesia is one of the eight largest exporters of shoes and socks in the world. The footwear industry has always been its pillar industry, so Indonesia has a certain degree of protection for its domestic footwear industry.

1. water shoes and boots have a metal head water shoes tax rate of 15%. In 2005, the tax rate was lowered to 8% in 2007, to 5% in 2009, and zero tariff in 2010.

The long boots and medium short boots tax rate is 15%, and is classified as a general sensitive product. The original tax rate will be kept down to 5% until 2018.

Other products were classified as two track normal products with a tax rate of 15%. The tax rate was maintained in 2005, 8% in 2007, 5% in 2009, and zero duty in 2012.

2. rafter rubber, plastic shoes and sports shoes, shoes with shoes and noodles on the sole of shoes, and rafter shoes with metal protective heads are all 15%. The tax rate was maintained in 2005, 8% in 2007, 5% in 2009, and zero duty in 2012.

The ankle length short boots are classified as general sensitive products with a duty rate of 15%. The original tax rate will be kept down to 5% until 2018. The other rafter rubber shoes tax rate is 15%. It is classified as a normal product of the two track, with a tax rate of 15%. The tax rate was maintained in 2005, 8% in 2007, 5% in 2009, and zero tariff in 2012.

3. leather shoes leather shoes tax rate is 10%, maintained this tax rate in 2005, dropped to 8% in 2007, reduced to 5% in 2009, realizes zero tariff in 2012.

4. cloth shoes rafter plastic outsole cloth shoes.

The sports shoes rate is 15%, and is listed as a highly sensitive product, will maintain the original tax rate in the future; other rafter plastic sole shoes tax rate 15%, is classified as the general sensitive product, will maintain the original tax rate until 2018 to 5%.

5. its shoes and boots, cloth shoes and other shoes have a tax rate of 20%, and are classified as general sensitive products, and will remain the original tax rate until 2018 to 5%.

6. footwear parts tax rate 5%, zero tariff in 2009.