Menbudpar: Not “Fair” Tax Imports Much Smaller Films

Minister of Culture and Tourism Jero Wacik said it still continues to evaluate the subject of taxes and duties for foreign movies. Policy on imported films are still under discussion, so there has been no final decision as well as increased taxes and duties for foreign movies.
For comparison, the film was subject to tax imports of Rp 50 million for one movie. But the national film production costs USD $ 5 billion, taxable income of Rp 500 million. This baseball fair, the fair baseball for his own nation
– Jero Wacik

The final decision involving various government agencies namely Kemenbudpar, Ministry of Finance, and Ministry of Economic Affairs new there in March 2011.

“We continue deliberation on this matter. We Indonesia film wants protected. The film imports continue to run. Cinemas increasingly grow,” he said at a press conference related to the national film policy and tax issues for foreign movies in Building Seven Enchantment Jakarta, Sunday (02/20/2011) .

He mentioned this during the tax and duty-paid imported film is less than that should be issued for a national film production. Therefore, the institute and the Ministry of Finance to formulate tax and duty waivers for national films. He added that if necessary the national film are not subject to VAT.

“In comparison, the film was subject to tax imports of Rp 50 million for one movie. But the national film production costs USD $ 5 billion, taxable income of Rp 500 million. This is baseball fair, the fair baseball to the nation itself,” he explained.

He said the goal is not to burden the filmmakers in the country. Jero also said the government did not want to kill but there needs to be imported movie rearrangement.

He also said that tax policy is the right film and Indonesia fully. “We are free to organize without having to submit to foreign pressures,” he said.

In connection with the DGT circular letter dated January 10, 2011, Jero said that the letter did not mention the import tax increase, but insisted that importers pay the correct and fair tax according to tax rules and regulations.

When asked about the film imports will stop in, Jero said that the Indonesian market is so big so it can not be removed. The government plans in accordance with Law No. 33-year-2009 that the national cinema playing movies at 60 percent.

Comparison of national films and imported films in 2009, 78 national film titles while import 204 film titles. Meanwhile, in 2010, only 77 national film titles, so far the score with as many as 192 titles for foreign movies.

Jero hope that with the policy of tax breaks for the movie industry, the film in the country can be excited and motivated to make the film more than 200 titles.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: