Luxury tax lifted on several goods

Luxury tax lifted on several goods

The Ministry of Finance has declassified several beverages and
cosmetics as luxury products, as they had become mainstream
consumer products.

The decision was driven by an agreement to streamline regional
taxation system under the Association of Southeast Asian Nations
(ASEAN) Harmonized Tariff Nomenclature.

The revocation of the luxury tax, ranging from 10 to 75
percent, on the select products was made effective as of Jan. 1
as regulated by a ministerial decree.

Included in the now luxury tax-free products are processed
milk and milk derivative goods, such as yogurts, whey, cheeses,
butter, flavored/unflavored fermented milk and milk fat.

Packaged and bottled non-alcoholic, fruit or vegetable drinks,
sweetened or unsweetened, are exempt from the tax, as well as
packaged or bottled non-alcoholic carbonated drinks.

Last, but not least, packaged or bottled cosmetic products for
skin, hair, hands and feet are also exempt from luxury tax.

The government's move is expected to help push down production
costs, increase the products' competitiveness and encourage
investment. -- JP