Indonesia drops Luxury Goods Sales Tax

Sat 13th Jun 2015

Indonesia is to withdraw its high rate luxury tax in a bid to stimulate consumption and spending. The tax is levied at between 10% and 125% depending on the nature of the goods. Indonesia’s growth has fallen in the past year, and consumption has been the biggest loser.

Goods subject to the tax include: phones; cameras; motor cars; alcohol; watches; previous stones.

Standard Indonesia VAT is 10%.



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