Indonesia is planning to exempt import duties and value-added tax on several goods as part of the incentives for textile, electronic, footwear, food and beverage industries at home, local newspaper reported Monday.

The government will exempt duties on materials not produced here and accelerate the annulment of value-added tax on primary commodities, reported Bisnis Indonesia.

"The incentives are given according to what the industries need and will be applied in a certain period until those industries recover," Erwidodo, deputy head of the Ministry of Finance's tariff team, was quoted as saying.

Also included in the incentive package is the reduction of luxury tax on electronic products.

The policy will cut state revenues from import duties and VAT but on the other hand will increase income from income tax, he said.

Source: Xinhua