Govt to impose luxury good
taxes on all cell phone

The trade and industry ministries plan to impose luxury good sales taxes (PPnBM) on cell phones across all segments in a bid to spur growth in the domestic industry.

Previously, the trade ministry said that the 20 percent tax would be imposed only on smartphones priced above Rp 5 million (US$442.28) per unit.

"Every cell phone is categorized as a luxury good," Trade Minister Muhammad Lutfi said in Jakarta on Monday as quoted by kontan.co.id.

Meanwhile, Industry Minister MS Hidayat said that his team was currently discussing the possibility of the planned policy.

"We are still brainstorming on the floor price of cell phones. It is possible that all cell phones will be affected [by this policy]," Hidayat said, adding that the new policy was expected to be implemented before the new Cabinet is inaugurated.

Kontan.co.id said that there were at least four phone assembling plants operating in Indonesia: Polytron, Advan, Evercross and Mito.

Indonesia imported 60 million smartphones worth Rp 3 trillion throughout 2013. (nfo/nvn)

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