Entrepreneurs urged the reduction of the minimum limit of Value Added Tax (VAT) for a tax refund facility for foreign tourists. The reason is that the relaxation of provisions on VAT refund provided by the government is considered not effective enough to arouse foreign tourists’ interests in shopping.
Previously, the Minister of Finance, Sri Mulyani Indrawati, relaxed the provisions on VAT refund through Regulation of the Minister of Finance Number 120/PMK.03/2019 regarding Procedure for Submitting and Settling Request for Restitution of VAT on Goods of Individual Holding Foreign Passport.
In response to this matter, the Director of Public Counseling, Services and Relations of the Directorate General of Taxation (DGT), Hestu Yoga Saksama, said a change of the minimum limit had to be made by an amendment to law through the approval of the House of Representatives. However, he could not be sure when he would include it in the amendment to law. At present, he continued, DGT is focusing on the preparation of the draft law on tax provisions and facilities for economic enhancement.