Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Andin Aditya Rahman
The Government is taking numerous steps to stabilize the currently declining Indonesia economy. Almost every sector is being reorganized as the Government holds the strong view that the continuously declining rupiah exchange rate is due to more than just one factor.
One of the policies that is currently under consideration is increasing luxury tax rates. This initiative has received the green light from the House of Representatives (House).
Mahendra Siregar, Deputy Minister of Finance, affirmed this plan while explaining that, “the main purpose is not to increase tax revenue,” in Jakarta on Tuesday.
Luxury tax rates currently stand at around 75 percent for each good to which they apply. The government and the House have agreed to increase the applicable rates from between 125 to 150 percent. This is expected to stop the demand and purchase of imported luxury goods.
The government will reformulate the regulation on luxury taxes including reformulating the types and classification of luxury goods.
“We are still developing this, both considerations in determining the kinds of products and product classification. These will later be determined by a Minister of Finance regulation,” explained Mahendra.
Sofjan Wanandi, Chairman of the Indonesian Employers Association, applauded the Government’s plan to increase luxury tax rates.
“Even if it doesn’t provide a significant positive impact on the rupiah, at least the Government is showing signs that they will restrict unnecessary luxury goods,” stated Sofjan.
Ramli Ahmad, Managing Director of Asia Pacific Mining Resources, also endorsed the Government’s intention to increase the current luxury tax rates which he believes will improve the rupiah exchange rate.
“This will definitely help to fix the economy. These measures will definitely assist the declining economy, particularly as the government will increase luxury taxes,” he concluded.
(hot/kc)
Fitri Novia Heriani, Andin Aditya Rahman
The Government is taking numerous steps to stabilize the currently declining Indonesia economy. Almost every sector is being reorganized as the Government holds the strong view that the continuously declining rupiah exchange rate is due to more than just one factor.
One of the policies that is currently under consideration is increasing luxury tax rates. This initiative has received the green light from the House of Representatives (House).
Mahendra Siregar, Deputy Minister of Finance, affirmed this plan while explaining that, “the main purpose is not to increase tax revenue,” in Jakarta on Tuesday.
Luxury tax rates currently stand at around 75 percent for each good to which they apply. The government and the House have agreed to increase the applicable rates from between 125 to 150 percent. This is expected to stop the demand and purchase of imported luxury goods.
The government will reformulate the regulation on luxury taxes including reformulating the types and classification of luxury goods.
“We are still developing this, both considerations in determining the kinds of products and product classification. These will later be determined by a Minister of Finance regulation,” explained Mahendra.
Sofjan Wanandi, Chairman of the Indonesian Employers Association, applauded the Government’s plan to increase luxury tax rates.
“Even if it doesn’t provide a significant positive impact on the rupiah, at least the Government is showing signs that they will restrict unnecessary luxury goods,” stated Sofjan.
Ramli Ahmad, Managing Director of Asia Pacific Mining Resources, also endorsed the Government’s intention to increase the current luxury tax rates which he believes will improve the rupiah exchange rate.
“This will definitely help to fix the economy. These measures will definitely assist the declining economy, particularly as the government will increase luxury taxes,” he concluded.
(hot/kc)