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Tax boss calls for more analysis on cellular phone taxation
Taxation Director General Fuad Rahmany says that the government needs to carefully analyze its recent plan to impose a luxury item value-added tax (PPnBM) on cellular phones
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T
axation Director General Fuad Rahmany says that the government needs to carefully analyze its recent plan to impose a luxury item value-added tax (PPnBM) on cellular phones.
He said that imposing a high PPnBM on cellular phones might affect consumers' purchasing power and could result in them purchasing the products abroad.
'It costs only Rp 300,000 (US$26.13) for a flight to Singapore. If the tax is too high, then they [consumers] might purchase cellular phones in Singapore instead,' Fuad said as quoted byKontan.co.id on Monday.
Therefore, he said, the planned policy needed more deliberation.
'We should not impose taxes on all items considered as luxury items. This could affect our retail industry,' Fuad said.
