IN ONGOING SECURING ASEAN ECONOMIC COMMUNITY EXPORT-IMPORT TAX HARMONIZATION OF FOREIGN ASEAN REGION IN ONGOING SECURING ASEAN ECONOMIC COMMUNITY

THE MEMBER Zuliastuti Arumsari Islamic University of Indonesia, Yogyakarta, Indonesia Ayu Endah Mustikaningtyas Lia Suci Kriswanti Gadjah Mada University, Yogyakarta, Indonesia

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Background  Economy as a new concern of the ASEAN  The formation of ASEAN Economic Community (AEC) is accelerated  There is a considerable gap among ASEAN member countries  Internally ASEAN countries are not ready yet to face the AEC  Many ASEAN trade agreement with other state outside in ASEAN region such as ACFTA

Therefore...... The need for innovation to deal with how ASEAN trade cooperation with other countries can benefit ASEAN countries in facing the AEC and do not become obstacles in the course of the ASEAN free trade through export tax equalization of import of goods by countries outside the ASEAN region How

Discussion New Challenges of AEC from ACFTA Ekspor-Import Tariffs in same ASEAN member countries Tax Harmonization on Export and Import New Framework of The AEC Challenges

New Challenges of AEC Domestic products that need to be developed External factor from ASEAN trade agreement with other countries outside ASEAN region Internal factor from all ASEAN state members Domestic products that need to be developed ASEAN has a lot of trade agreements with several countries outside the region, one of China Economy isn’t ready yet SMEs in the country has not abandoned Human resources are less strong ASEAN and China form the ACFTA to put China get a special treatment on goods entering into ASEAN

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Dangeres of External Challenges of AEC  Many Chinese products are flooding the market due to the ACFTA ASEAN  Taxes export and import of goods between different ASEAN member countries  ASEAN's internal problems are not ready yet to face the AEC will be exacerbated by the ACFTA  The passage of the ASEAN Economic Community will be hampered

Export-Import Tax in Some Country of ASEAN No State the percentage of export tariffs on imports 1 Indonesia Export and Import taxes tariffs average about 25% Tax cuts amounting to 5% 2 Vietnam The export tax imposed tariffs ranging from 0-45% Tax applies to all products imported around 9.5% Import tax18% for sensitive product Tax cuts amounting 0-5% in years 2025 3 Thailand - Import tax rates on the peg in the range of 11% 4 Myanmar The import tax rate ranged from a 5-25% The export tax applicable on certain items, but with a payment system instead of a percentage 5 Laos Import tax range are from 0-40% The export tax is set a few conditions

Analysis So... What is the solution? Referring to the EU in implementing the Free Market Seeing the condition of the economy and the readiness of ASEAN member countries in AEC The establishment of the ASEAN Tax Forum which aims to oversee taxation among member countries of ASEAN Taxation is discussed in ASEAN Blueprint 2025 is not in accordance with the new challenges of AEC on ACFTA So... What is the solution?

Tax Harmozation on the Export and Import What is The Purpose?  Keeping the ASEAN free market in order not to interfere with the intervention by the Chinese products that overload  Creating economic growth for the ASEAN member countries on import-export activities are evenly  Easing the course of AEC with ASEAN member economies are evenly  Creating a new tax framework for ASEAN to benefit all member states in implementing the AEC What is That?  Tax Harmonization is a tax equalization by providing uniform tax rate for all member countries to export products imported from countries outside the region that has good trade relations with ASEAN and are not

Stages in the framework of the New Tax Harmonization Phase 1 Record Phase 6 Make a definite output Phase 2 Adjust Tax policy step to achieve Harmonization Phase 5 Determining the value equation taxes Phase 3 Export Oriented Phase 4 Build From Within

Conclusion AEC has been going on for one year. Even the new challenge comes up with regard to trade relations that ASEAN did with countries outside the region, such as the one China. Through ACFTA, China get preferential treatment in the import- export activities with ASEAN countries. ACFTA would threaten the course of AEC, therefore, need a new framework in determining export and import tax rates for all member countries of ASEAN harmonized. The importance of this harmonization will refer to the European Union first has run regional economic integration. The new framework will make the running of the AEC remains stable and unaffected by the intervention products from outside the region. Besides the tax harmonization will also reduce the gap of ASEAN member countries which will facilitate the implementation of AEC.

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