Wednesday, 22 June 2011

Songle Tax to be Imposed on Imported Film

The Minister of culture and Tourism. Jerro Wacik stated that the government will not prohibit showing of imported film in Indonesia. But would impose single tax, i.e one import tax tariff for one single imported film. “I, the minister of economic and the minister of finance have agreed to impose single tariff as we termed it. but we  will report to taxation, in any country at all, must be decided by the president” he disclosed to the press at the Presidential Palace on Tuesday. Tax for imported film is still necessary to protect national film. Foreign films are permitted to enter to meet the need of cinemas in Indonesia by 2014. “ as with local films, there are only one hundred of them now. The rest will be covered by imported films. Hollywood movies, Indian movies and Hong kong movies may fulfill market need. Indonesian films are numerous too. Our objective is that there will be more movies halls the more cinemas the more job opportunities will be in the film industry, that’s our objective” the minister said. About the magnitude of the single tax, such is being discussed by the Ministry of Finance, after getting permit from the president. Meanwhile, about import tax for raw materials for domestic fill industry, according to Jerro, was already abolished, must waiting for the Regulation of the Minister of Finance. “ tax for raw materials for the films industry will be zero. For the most part tax is zero. If the stipulation is in line with the president’s guideline, they can be out in effect. For example if tax for raw materials is proposed as zero, it can be zero. But in the end the decision is in the hands of the Minister of Finance” he conclude.

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