Indonesia Next Year Or Raise The Import Tax On Shoe Bags To 7.5%

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< p > to reduce imports and improve the current account deficit, < a href= "http://sjfzxm.com/news/index_s.asp" > Indonesia's Ministry of Finance < /a > is expected to raise the prepaid tax rate of imported consumer products from the current 2.5% to 7.5% in mid January 2014.

The new tax rate will affect about 870 imported consumer products, including electronic products, mobile phones, laptop computers, cars (except for oil and electric or electric vehicles), handbags, < a href= "http://sjfzxm.com/news/index_s.asp" > clothing < /a > shoes, jewelry, perfume, furniture and playthings. In order to avoid inflation, imported food will not be affected.

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< p > at the same time, in order to ensure the smooth progress of industrial production, the components and equipment of the components are not restricted.

Prior to the payment in advance of each import product, and at the end of the year when tax returns were used to deduct tax, it has a greater impact on the poor flow of importers.

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< p > the Minister of finance of Indonesia pointed out that the implementation of the new tax would reduce the import amount by about 5 billion US dollars per year, and the conservative estimate could also reduce about 20~30 billion US dollars.

It is estimated that the deficit will fall to about 31 billion to 32 billion dollars before the end of the year a href= "http://sjfzxm.com/news/index_s.asp" > Indonesia current account /a.

On the other hand, in order to promote exports, the Ministry of finance of Indonesia will abolish the current export tax rebate procedure (KITE) and pform it into a simpler process.

The previous export tax rebate process sometimes takes 1~2 years.

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< p > the new policy is expected to be promulgated in mid February next year, so that customs and tax authorities will have enough time to cooperate with the system.

As Indonesia improves the < a href= "http://sjfzxm.com/news/index_s.asp" > prepaid tax rate < /a > mainly for domestic importers, it may replace some small importers who may cause insufficient funds to replace domestic products, while the large importers with large funds will continue to import related consumer products, but they will be pferred to the price of products because of the increase in costs and accelerate inflation.

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