Govt Pledges Review of Controversial New Indonesian Film Tax
Under fire for a potential new tax on foreign films that has led distributors to halt their importation, the government on Sunday promised to review the move.
The minister of culture and tourism, Jero Wacik, said the government wanted to support the development of the domestic film industry with the proposed new tax.
“We will review the Directorate General of Taxation’s circular issued in January on the new levy on imported films,” he said. “This is because we are not going to pursue regulations that have a bad effect on the public and threatened to kill the cinema industry here with their implementation.”
The minister said the government, if necessary, would also invite distributors to discuss how much they were prepared to pay. Imported films already pay a 23.75 percent excise duty and another 10 percent income tax. Local governments also levy up to a 15 percent tax on ticket sales.