"The import duty on four components has been revoked. We are proposing around 300 components," Inaca General Chairman M. Arif Wiboso stated at the 2015 Performance and 2016 Outlook of the Ministry of Transportation event here on Wednesday.
Arif expressed hope that the revocation of import duty on 27 more components would happen next year as most components are not domestically manufactured and have led to increased operational costs.
"This indeed comes under the authority of the Ministry of Finance, but I think the Ministry of Transportation should intervene as it will not disrupt the local industry," he remarked.
Arif has also sought exemption from service tax for airline companies that have acquired aircraft via an operating lease rather than by buying the aircraft.
"We hope such companies will receive special treatment, so that their balance sheets would become stronger as it is difficult for operating lease companies to cover their operational costs," he pointed out.
He said most operating lease companies in the ASEAN and Asian countries, such as Singapore and Dubai were exempted from service tax.
"The tax reaches 10 percent. We understand that the government needs income in the form of tax, but we also contribute to economic growth by attracting people to travel," he stated.
Arif believes that 2015 would be one of the hardest years for the aviation industry due to the rupiahs depreciation and fluctuations in global economic conditions.
"Indeed there is a reduction in fuel price, but it is not balanced due to oversupply in the market," he added.(*)
Editor: Heru Purwanto
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