Finance Minister Sri Mulyani approved the new rules regarding luxury goods tax. The Finance Minister Regulation No. 35/PMK 010/2017 regulates taxable goods that are considered a luxury other than motorized vehicles that are subject to luxury goods tax.
As of now, objects that are subjected to the luxury goods tax are not only expensive motorized vehicles. The new regulation states that luxurious homes and yachts will be subjected to 20-75 percent tax.
Luxurious residences such as non-strata title town houses with a 20 billion minimum price tag will be subjected to a 20 percent sales tax. It also applies to apartments, condominiums, town houses, that are sold under a Rp 10 billion price sticker or above.
The 40 percent tax will be subjected to items such as hot air balloons, air transportation that do not have a propulsive force. Other item on the list is firearm ammunition, with the exception of ammunition that are used for state purposes, excluding air rifle ammunition.
Sri Mulyani also stated that a 50 percent tax will be subjected to air transportation that are not mentioned in the second attachment, with the exception for the ones that are used for state purposes, commercial use, helicopters, and other air transportation other than helicopters. Followed by firearms with the exception of firearms that are used for state purposes, such as artillery weapons, revolvers and other handguns. Also including other force multipliers that are operated with explosive devices.
Other items subjected to 75 percent luxury goods tax are luxury yachts, yachts, excursion vessels and watercraft that are designed to transport people, ferries and yachts. The 75 percent luxury goods tax do not apply to items that are used for state purposes or public interests.