Indonesia lifted import income tax for thousand of commodities

The Indonesian government announced on 5 September 2018 the implementation of the rate hike for import income tax (PPh) on the import of 1147 commodities items in an effort to curb its current account deficit.

The rate hike varied from 2.5 per cent to 10 per cent depending on the goods categories. The regulations would come into effect in 7 working days. 

This is not the first time the Indonesian government uses Income Tax policy to control imports. Similar implementations have been taken place in 2013 and 2015. It is still unclear if polyolefins are subjected to the rate hike, and Indonesian buyers are now in deep concern given the fact that domestic supply is still far short from demand.