Govt Signals Plans Over Film Tax Row
An end to the long-running dispute over imported film royalties came a step closer on Sunday as the Finance Ministry signaled it had decided to raise the import duty on foreign films and also change the nature of the tax.
“What is being raised is the import duty. It would be changed from an ad valorem tax into a specific tax,” said Bambang Brodjonegoro, the head of fiscal policies at the Finance Ministry.
An ad valorem tax takes a percentage of the value of the good or service, while a specific tax is a sum imposed on an item, regardless of its value.
Bambang provided no further details on figures, only saying the change had been proposed by the importers and had been discussed with the other stakeholders. “This new tariff is still lower than in Thailand and South Korea, and even more so when compared to the royalty system,” he said. He declined to elaborate, saying that an announcement would be made by the Finance Ministry.
Bambang also did not comment on a figure floated earlier on Sunday by Culture and Tourism Minister Jero Wacik in Denpasar.