The Industry department have expressed hope that the new Finance Minister would bring changes in taxation system in trade especially export to stimulate growth in finished goods export and reduce raw material export in the future.
Vice Minister of Industry Alex retraubun said on Thursday during a visit to Surakarta, Central java, exporters have complained about the high tax for finished goods, prompting them to switch to raw material export. While finished goods, Alex said would generate much higher revenues.
The measure he admitted would reduce tax income in a short term around one to two years, but it will boost tax collections in the longer term.
But Alex also acknowledged the lack of technological capacity of Indonesian manufacturer as one of the causes that hinder finished goods export. The palm oil crude and cocoa for instance, according to Alex were still exported as raw material, due to lack of downstream industries able to produce varied numbers of products of the commodities which improve its value added.
Vice Minister of Industry Alex retraubun said on Thursday during a visit to Surakarta, Central java, exporters have complained about the high tax for finished goods, prompting them to switch to raw material export. While finished goods, Alex said would generate much higher revenues.
The measure he admitted would reduce tax income in a short term around one to two years, but it will boost tax collections in the longer term.
But Alex also acknowledged the lack of technological capacity of Indonesian manufacturer as one of the causes that hinder finished goods export. The palm oil crude and cocoa for instance, according to Alex were still exported as raw material, due to lack of downstream industries able to produce varied numbers of products of the commodities which improve its value added.
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