Friday, 03 July 2020 | 04:32 WIB

Tourism Minister: Erase Yacht Tax to Increase Foreign Exchange

Tourism Minister meets with Coordinating Ministry of Maritime Affairs and Head of the Investment Coordinating Board (BKPM) to redue yacht tax

JAKARTA, NNC - Tourism Minister Arief Yahya say that a 0% tax for Yachts would impact on the increase of state revenue in the tourism sector. It was conveyed by the Tourism Minister in a Coordination Meeting for the Proposed VAT Luxury Goods for Foreign Yacht Deletion Discussion at the office of Coordinating Ministry of Maritime Affairs.

"With this deregulation, it will simplify and also attract more Yachts carrying foreign tourists to visit Indonesia and will increase the country's foreign exchange", Coordinating Minister of Maritime Affairs Luhut Binsar Panjaitan said at the meeting.

In the meeting, Coordinating Minister of Maritime Affairs Luhut Binsar Panjaitan was also accompanied by the Head of the Investment Coordinating Board (BKPM) Thomas Trikasih Lembong, and also Director General of Customs and Excise of the Ministry of Finance Heru Pambudi. It was decided that the deregulation should be done to boost yacht inorder to increase foreign exchange from the Tourism sector in Indonesia.

Minister Arief has done a rough calculation to estimate the state revenue obtained from this deregulation. "VAT Luxury Goods Yacht with a value of 75% will only benefit the state of US$ 80,540,000, while if the VAT is erased (0%), the state profit earned will be 5 times the initial income or about US$ 442,450,000", Arief said in a press release on Tuesday, July 24.

Arief also said that with this deregulation, the country will also gain tremendous profits from the number of yachts coming in through ports and operational maintenance in Indonesia in the amount of US$ 350,700,000.