TEMPO Interactive, Jakarta: The House of Representatives has proposed to classify high-powered vehicle, yacht, and luxurious house into list of items to become subjects to luxurious goods tax, a lawmaker leading the legislation informed on Wednesday.
Head of the special committee on value added and luxurious goods bill, Vera Febyanthy said vehicles with engine capacity above 3000 cc will be categorized as luxurious goods, but the bill excempts high powered vehicles for special use e.g. busses or other public transport means.
Other properties which were also proposed to be charged with luxurious good tax are yachts and houses which occupy areas larger than 500 square meters..
Vera said there were hundreds of goods in the list of luxurious item, but the committe has yet to determine the tax rates for the goods. The bill also set the range of luxurious goods tax from 10 percent to 200 percent, which extended the current upper limit of 75 percent.
Vice Chairman of the Trade and Industry Commission, Muhidin Said, said the classification of the 3,000 cc vehicles will not pose much impact on the automotive industry as most of the engine capacity produced for cars sold in the country was around 2,000 cc.