The increase still puts Indonesia’s new allowance below that of China and Singapore, which imposes taxes for items above US$740 and US$600 respectively.
Duty-free allowances on items bought abroad and brought into Indonesia have been raised from US$250 to US$500, said Finance Minister Sri Mulyani Indrawati last Thursday (December 28).
The increase still puts Indonesia’s new allowance below that of China and Singapore, which imposes taxes for items above US$740 and US$600 respectively.
Items more than US$500 will be subject to levies including a 10% value-added tax (PPN) and 10% income tax (PPh).
Travellers holding taxpayer cards (NPWP) are only required to pay 7.5% PPh, while those who did not have an NPWP are required to pay 15% PPh, said Indrawati.
Unlike the previous regulation, under which the duty was applied to families, the new regulation only applied to individuals, she said.