Indonesia eliminates luxury tax for most goods

Indonesia is removing a luxury tax for most goods, except for luxury cars, ships, aircraft, guns, and larger properties, finance minister announced on Thursday.

“We want to push up people’s purchasing power and spur industrial growth. We also want to reduce the people’s tendency to buy goods abroad,” Bambang Brodjonegoro, the minister, told a press briefing.

Buyers of electronic appliances like refrigerators, airconditioners, and branded goods will no longer be required to pay luxury tax, while people importing such goods from abroad will have to pay 10 percent of the price as income tax instead of 7.5 percent earlier.

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