| Indonesia lifts import duty, coal export tax |
JAKARTA, Nov. 20 (Xinhua) -- To attract investors to put their money in Indonesia's vast energy resources, the government has lifted import duties on goods and equipment for oil and gas exploration and production as well as export tax on coal products, a report said Monday.
The import duty exemption for equipment and goods used in the oil and gas upstream sector is given to oil and gas companies that operate under production sharing contracts with BP Migas, the regulatory body for oil and gas exploration and production, said English daily The Jakarta Post.
The equipment and products exempted from import duties include those used for drilling and production, transportation, power generation as well as workshop equipment, electrical tools, valvesand fitting tools, building materials, metal, hardware and packinge quipment, paints, oils, chemicals and laboratory equipment, medical equipment and supplies, household and office appliances.
According to the Finance Ministry's ruling, the exemption came into effect on Oct. 16, 2006, and will be valid until July 15, 2007.
Related companies wishing to take the advantage of the import tax exemption should report their import plans for at least a year to the office of the director general of excise and customs.
In addition to the abolition of the import duty, the Finance Ministry also removed the 5 percent tax imposed on coal exports which was introduced several years ago to protect the coal supply at home.
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