Feature story: Indonesian government imposes higher import tax on spirits

Written by AWI. Posted in Hotels Update

Indonesian government imposes higher import tax on spirit

A glass of wine or a rum and coke costs more in Indonesia with new duties.

Visitors to Indonesia have to fork out more for a cocktail or a glass of red wine with a meal when visiting the country due to higher import tax on spirits.

Import duties on alcoholic drinks sold in Indonesia are now set at 150% of their market price, higher than under previous arrangements.

Indonesia’s Finance Ministry, in a regulation issued on 9 July 2015,  stated that any beverages with alcohol content of less than 80% such as brandy, whisky, vodka, gin and rum will be charged import duties at 150%.

Under the previous regulation, import duties were based on volume, at around Rp 125,000 (US$9.31) per litre. Under the current regulation, duties will refer to price value.

For example, a litre of whisky with a market price of Rp 1 million cost 1,125,000 under the previous regulation, while under the new rule the price will swell to Rp 2.5 million.

The new regulation also targets beverages with alcohol content of between 15% and 25%, such as wine. However, import duties for wine are set at a lower rate of 90% of market price.

Source: The Jakarta Post

AWI

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