Ministry urged to cut luxury tax on daily needy

Ministry urged to cut luxury tax on daily needy

JAKARTA (JP): The Ministry of Industry and Trade has urged the
Ministry of Finance to reduce or abolish altogether luxury taxes
imposed on products that are no longer considered luxuries.

Director General of Metal, Machineries, Electronics and
Various Industries Agus Tjahajana said on Friday that luxury
taxes currently imposed on several electronic products and
various other goods were no longer suitable in the current
economy condition.

"We urge the finance ministry to remove or at least to cut the
luxury taxes imposed on several products, which in the current
condition are no longer considered luxury goods," Agus said.

"For example, bottled drink is no longer considered a luxury
good because it has become a daily need nowadays. So it should be
exempt from luxury taxes."

Agus said the Industry and Trade Research and Development
Agency was studying the amount of luxury tax to be applied. The
agency's suggestion then will be submitted to the finance
ministry.

Agus added that his office also suggested the finance ministry
increase the amount of luxury tax imposed on other electronic
products and manufactured goods still considered luxury items.

He acknowledged that there were differences among government
institutions in categorizing manufactured products.

"Every government institutions should possess the same
perceptions in categorizing products as luxury goods or nonluxury
goods," he said. (gis)