USDA Says Exporters Could Feel 'Significant Impact' From New Indonesian Tax
Indonesia soon will impose a new 12% luxury goods sales tax on imported products intended for “high-end Indonesian consumers,” including certain premium beef, pork, fruit, seafood and specialty rice, USDA’s Foreign Agricultural Service said Jan. 2. USDA said those products historically haven’t been subject to any value-added taxes, adding that the new measure is expected to have a “significant impact on [the] above-mentioned U.S. agricultural exports to Indonesia.”
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The agency said the tax could take effect as early as this month. The U.S. exports about $154 million worth of those premium agricultural products to Indonesia each year, USDA said.