The Ministry Of Finance Calls The 12 Percent Luxury Goods VAT Increase Potentially Added IDR 3.5 Trillion
JAKARTA - The Ministry of Finance (Kemenkeu) estimates that additional tax revenues from an increase in value added tax rates (VAT) of 12 percent specifically for luxury goods ranging from IDR 1.5 trillion to IDR 3.5 trillion.
The Director General of Taxes at the Ministry of Finance, Suryo Utomo, said that his party had jointly calculated the Fiscal Policy Agency (BKF) regarding the potential for additional revenue from the VAT policy of 12 percent by 2025.
"Our calculations with Mr. Febrio range are around Rp. 1.5 trillion to Rp. 3.5 trillion," he said at a press conference on our State Budget, Monday, January 6.
Previously, Minister of Finance Sri Mulyani Indrawati explained that the increase in VAT rates of 12 percent specifically applies to goods currently subject to the luxury goods sales tax tariff (PPnBM) as stated in the Minister of Finance Regulation (PMK) Number 15 of 2023 along with the details:
1. Luxury residential groups such as apartments, condominiums, town houses and the like at a selling price of IDR 30 billion.
2. Driverable group of air balloons, other aircraft without propulsion; firearms group except for state purposes, bullets and parts, does not include air rifle bullets.
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3. Aircraft groups that are subject to a rate of 40 percent except for state or commercial transportation purposes such as helicopters, aircraft and other air vehicles, in addition to helicopters.
4. Groups of firearms and other firearms, except for state purposes such as artillery weapons, revolvers and pistols, firearms (in addition to artillery weapons, revolvers and pistols) and such equipment operated with explosives firing.
5. Luxury cruise groups, (seventy five percent except for state purposes) or public transportation cruise ships, excursion ships, and such water vehicles are primarily designed for the transportation of people, ferries of all types, except for the benefit of the state or public transportation, Yacht, except for the benefit of the state or public transportation or tourism businesses.