Latest List Of Taxable Luxury Goods (PPnBM).

YOGYAKARTA - According to human life, needs are divided into several classifications according to their level of importance, namely primary, secondary and tertiary needs.

In this case, what is related to PPnBM (Sales Tax on Luxury Goods) is for tertiary needs or the need for goods and/or services that are classified as luxury. What is meant by "luxury" is the need that must be met if the primary and secondary needs have been met. Then what are the list of taxable luxury goods?

In general, goods and/or services that are classified as luxury really relate to people's income, especially for those with tax payer status. Prices that tend to be really expensive are generally reserved for those who have middle to upper incomes.

In this case, consumers will be subject to VAT (Value Added Tax) if they consume or use goods and/or services that are classified as luxury. Not only that, consumers can also be targeted as taxpayers who are charged with PPnBM or tax collection on luxury goods. The imposition of PPnBM here is classified as more detailed than the imposition of VAT.

What is Luxury Goods Sales Tax? PPnBM stands for Sales Tax on Luxury Goods which can be termed as imposing tax on goods and/or services that are classified as luxury or professions or business activities related to the activity of importing goods that are classified as luxury. The imposition of this tax is only legalized once (1 time) at the time the goods are delivered to the producer.

In Indonesia, the imposition of PPnBM is limited in the provisions of Law (UU) Number 8 of 1983 concerning Point Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) or generally called the VAT Law. this is because PPnBM and VAT are always related to one another, where the imposition of PPnBM is carried out because of the VAT collection. As a model, consumers buy BKP and/or JKP that are classified as luxury, such as four-wheeled vehicles, therefore consumers will be charged VAT or PPnBM.

Even though it has been stipulated in the VAT Law, PPnBM is only explained in general or not too deeply analyzed in its use. Simultaneously, the Ministry of Finance (Ministry of Finance) through a Minister of Finance regulation (PMK) explained in more depth regarding the imposition of PPnBM, this was stated in PMK 141/2021, which was then inherited into a Director General of Taxes Regulation (PER) and a Director General of Taxes Circular Letter (SE). . However, these PERs and SEs cannot be made the basis of PPnBM regulations, but only serve as a complement and guide in the implementation and technical rules of PPnBM.

List of Taxable Luxury Goods

• Motorized vehicles, except for ambulances, hearses, fire engines, detention vehicles, public transportation vehicles, state interests
• Luxury residential groups such as luxury homes, apartments, condominiums, totan houses, and the like
• Aircraft group, except for the needs of the state or commercial air transportation
• Hot air balloon group
• Group of firearms bullets and other firearms, except for state needs
• Group of luxury cruise ships, except for the benefit of the state, public transportation or tourism businesses

Consideration of an item being subject to PPnBM?

In the Value Added Tax (VAT) Law article 5, consideration of an item is subject to PPnBM, namely:

• fairness of tax imposition between low-income consumers and high-income consumers
• controlling the consumption of luxury goods
• protection for small or traditional producers
• securing state revenue

So after knowing the list of taxable luxury goods, see other interesting news on VOI, it's time to revolutionize the news!