Indonesia drops Luxury Goods Sales Tax
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%.