Beyond 2000 The medium term strategy, as well as mentioning the policy measures referred to above from the budget speech, also announces a number of other prospective tax changes. These will possibly be introduced in subsequent years. The decentralization of government responsibilities to the regions will require a significant increase in regional tax revenues. It is envisaged that the regional government revenues will be enlarged to include state revenues derived from natural resources located in the region, such as from oil and gas, forestry resources and the like. The memorandum does not mention whether changes will also be proposed to existing sources of regional government revenues such as land and building tax, tax on change of title to land and buildings, and the various regional taxes on vehicles, entertainment, advertising, and so on.
VAT exemptions Unnecessary exemptions are to be phased out.
It is possible that the exempt status of unprocessed goods will be replaced by an exemption for goods considered basic necessities. This would impact a number of major industry sectors, including agricultural products, crude oil, natural gas, and electrical power, amongst others. Import duty exemptions All exemptions will be eliminated except those relating to international agreements. Forest sector taxation policy is to be reviewed. It is interesting that neither the budget speech nor the medium term strategy refers to other reforms to the income tax laws.