VAT 12 Percent Especially For Luxury Goods, Ministry Of Finance For FMD Flats

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

Minister of Finance Sri Mulyani Indrawati revealed that her party will be overtime on this New Year's Eve to prepare a Minister of Finance Regulation (PMK) regarding the tariff for an increase in value added tax (VAT) of 12 percent specifically for luxury goods.

The issuance of the Minister of Finance Regulation (PMK) is in line with what President Prabowo Subianto said which confirms that the increase in VAT is 12 percent specifically for luxury goods which have been the object of the Sales Tax on Luxury Goods (PPnBM).

"For PMK, we are still working, earlier I said we are not going home. We will definitely upload it later," he said at the Press Conference, Tuesday, December 31.

Sri Mulyani explained that the 12 percent increase in VAT only specifically applies to luxury goods on January 1, 2025, so that goods and services that have been affected by 11 percent and 0 percent will not change.

"Tomorrow there will be no impact, it remains as usual, which so far between today and tomorrow has not changed. So what has been going on so far has been going on as usual, there has been no change," he said.

Sri Mulyani emphasized that a list of luxury goods and services would be applied to an increase in VAT of 12 percent on January 1, 2025.

On the other hand, the list of luxury goods and services affected by VAT is 12 percent the same as those stipulated in PMK Number 15 of 2023.

There are several luxury goods and services, namely, apartments, condominiums, and town houses at a selling price of Rp. 30 billion or more, air balloons, private aircraft, bullets and firearms, to cruise ships and yachts.