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Indonesian upstream textile industry urge for tax exemption

Related Keywords: Badan Kebijakan Fiskal, companies only use relatively cheap imported raw material, companies that obtained, Ease of Import Facility for Export Purposes, exempt local raw materials, Indonesian upstream textile industry, KITE, provides tax exemption for imported raw materials, supplied by local manufacturers from VAT, urged Fiscal Policy Office

The Indonesian upstream textile industry has urged the Fiscal Policy Office in Indonesia, Badan Kebijakan Fiskal, or BKF to exempt local raw materials supplied by local manufacturers from VAT.

Currently the Indonesian government only provides tax exemption for imported raw materials to those companies that obtained the so-called "Ease of Import Facility for Export Purposes" (in Indonesian: Fasilitas Kemudahan Impor Tujuan Ekspor, or KITE) on the strict condition that these companies only use these relatively cheap imported raw materials for output that is shipped abroad.

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