: Elimination of value added tax (VAT) from upstream to downstream in the shipping industry will cut production costs by about 10% are believed to promote the competitiveness of national shipyards. Director general of the commodity-Based Industries. High Technology Industry Ministry Budi Darmadi said the government is now aggressively trying to increase the role of national shipyard to prioritize the construction of ships for the oil and gas and shipping needs as optimal as possible. He admitted for purposes of national shipyards faced with problems of competitiveness due to higher production costs expensive compared with international shipyards, such as China and South Korea, so the price is higher than the supply ship at dock. With the same specification, LPG carrier vessel dwt weighted 3500 China produced more cheaply to U.S. $ 5 million compared with domestic production. "One is because China's own advantage only get about 13% subsidy to ship their exports, "he said.For currently reduces the difference in price, the government promised to immediately complete the discussion on the abolition of the imposition of VAT shipyard.
Budi said the Ministry of Industry together with the related departments are now discussing the VAT exemption for the upstream to downstream activities of the national shipping industry. "We proposed the exemption of VAT in particular. Now shipping VAT is not recoverable because it is free so that the shipyard is borne VAT If released from upstream to downstream it.'ll Cut costs 10%," he said. However, Budi explained, although the national shipyard offering price is still higher than foreign, are still profitable in the long term. Because the cost of procurement of foreign shipyards do not consider post-purchase service account which normally provide precise requirements burdensome.
"For example the Chinese ship, the maintenance guarantee which must be repaired if damaged ship in China. Fare to get there how much? If produced in the country could be improved here, " he said, independence is an important consideration of government in supporting the development of national shipping industry." Shipping is supportive of all sectors, including oil and gas and shipping. If we are not independent, I will need it later because we will be depressed. Independence was expensive at the beginning, but in the long term more sustainable and less expensive".
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