REPUBLIKA.CO.ID, JAKARTA -- Minister of Tourism Arief Yahya believes that an effective "tax refund" policy will be the main attraction for shopping in Indonesia. He expected the policy would make Indonesia a popular shopping tourist destination.

However, the "tax refund" policy in the country needed to be adjusted or regulated. By doing so, he believed Indonesia could compete with other nations at the regional and global levels.

"The tax return system for foreign tourists, or 'tax refund,' needs to be reviewed along with the Finance Ministry and must be followed by a commitment from all members of the Indonesian Businessmen Association," Yahya noted.

He encouraged members of the Indonesian Renters and Shopping Center Association (Hippindo) to register as taxable entrepreneurs and taxable shops.

"Thus, the 'tax refund' will truly become an attraction for shoppers that is easier to promote," he noted.

Nonetheless, he highlighted the current need for an revision in several "tax refund" regulations.

Minister Yahya elaborated that the tax refund regulation, which should be reviewed, included the need for a relaxation of the regulations, by decreasing the minimum expenditure amount in one invoice from Rp5 million to Rp1 million.

"In addition, it is necessary to simplify the tax return process and extend the refund period," he stated.

The current claim time is recorded for only a month after purchase, whereas in other countries, the refund period can be up to three months, thereby offering tourists a longer time period to be able to get a tax refund while visiting the concerned country.

Minister Yahya also assessed the need for efforts to increase the number of taxable retailers, so that the number of tax refund participants will increase in the country.

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