Accomodation in Bali Airfare to Bali What to do in Bali

Tax Incentives for Indonesian Visitors

At one time years ago I used to enjoy buying my duty-free goods in Australia before returning to Indonesia.

Now it is a matter of paying full price for the article and then going to a booth inside the airport and having the refund put into your credit card. I just hate all this bullshit tax stuff!.

It appears that Indonesian lawmakers are now considering VAT refunds for tourists whilst on their vacation. I can understand this happening at the airport in Ngurah Rai where the prices are atrocious and all in American dollars. A bit different on the street though.

Can you imagine doing a bit of clothes shopping in the Kuta Art Market or Poppies Lane 2 and then doing the VAT thing. The Balinese vendors will be mind-boggled with the whole situation!.

Anyway, the authoritative e-newsletter Indonesian Digest from Ibu Wuryastuti Sunario reports that Value Added Tax refunds may soon be available for visitors shopping during their Indonesian holidays:

"In a bid to boost tourist arrivals to Indonesia visitors may soon be given refunds on VAT on purchases made in the country, said Director General for Taxations Darmin Nasution. Its application now only awaits the enactment on the Revised Bill on Taxations that is now before Parliament reports the Kompas daily.

The Law provides that VAT refunds will be given on minimum purchases of Rp. 500,000 upon departure from designated airports after passengers have filled in the necessary forms attached with the appropriate receipts. Shops where forms are available will be identified by special signs. When the Bill is passed by Parliament then follow-up details on procedures will be stipulated in a Decision by the Minister of Finance said Darmin Nasution.

In the latest development Parliament has returned the Bill to the Government for failure to follow the correct procedure since the Bill was submitted by the Minister of Finance and not by the President as Head of Government. Presumably once the correct procedure is followed then debates on the articles may proceed."