Government Raises Duty-Free Limit to US$500

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The government has announced that it has raised the limit for duty-free shopping items into the country from US$250 to US$500 per person, according to Finance Minister Sri Mulyani. It is still lower than that of other countries.

“However, even though it has been raised, Indonesia’s (duty-free import limit) is still lower than that of China (which sets a limit of) US$764 and Singapore at US$600,” Sri Mulyani said at the Finance Ministry office in Central Jakarta, as quoted by tempo.co.

The minister explained that a person bringing goods into the country that exceeds the US$500 per person limit will be charged a duty of ten percent and ten percent value-added tax (PPN), as well as income tax (Pph). The income tax for holders of taxpayer number cards (NPWP) will be 7.5 percent, while those without NPWP will be charged 15 percent.

Furthermore, the new rule also removes the term “family” that was used in the old rule, which counted the unit of family to determine the duty-free import limit. Now, the limit will apply to every individual, instead of family.

“So for example if there is a family with four members, then now each member will have a maximum goods value of US$500,” she said.

As for goods brought by passengers that require special treatment such as jewelry, there will be special provisions applied. Newly purchased electronic goods will be allowed through customs but will be restricted to two units per person and will also still be charged.

 

Photo by sinarmitrapersada.com

 

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