Govt Plans Levy on Luxury Bags, Shoes
22 January 2015 11:50 WIB
TEMPO.CO, Jakarta – The government plans to impose sales tax on luxury goods (PPnBM) on goods such as wristwatches, bags and premium shoes in the near future.
For example, according to tax acting director general Mardiasmo, luxury bags priced at Rp20 million or above and shoes above Rp10 million will be taxed. He said the amount of the tax was still being discussed.
The government is also planning to levy PPnBM on luxury apartments that sell at Rp2-5 billion and higher and is considering to impose value-added tax (PPn) on electricity above 2,000-6,000 volt-ampere.
"The PPn potential from electricity is Rp2 trillion,” Mardiasmo said, adding that that amount could be obtained if the PPn was set 10 percent.
He further said this policy will be issued in this year’s first quarter.
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