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