Govt. Introduces New Classifications of Non-Motor-Vehicle Taxable Luxury Goods

With the goal of effectively balancing the imposition of taxes between low-income and high-income consumers, as well as to boost the Indonesian tourism sector against a background of a growing economy and a more prosperous general public,[1] the Indonesian Government recently issued Regulation No. 61 of 2020 on Non-Motor-Vehicle Taxable Luxury Goods Subject to the Luxury Goods Sales Tax (“Regulation 61/2020”). This new regulation sets out various new categories of non-motor-vehicle taxable luxury goods (“Luxury Goods”) that will be subject to the imposition of Luxury Goods Sales Tax (Pajak Penjualan atas Barang Mewah – “PPnBM”).