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Cell phone prices to rise by more than 30%: Association
The government's plan to impose a luxury goods sales tax (PPnBM) on cell phones will result in more than 30 percent price increases
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The government's plan to impose a luxury goods sales tax (PPnBM) on cell phones will result in more than 30 percent price increases.
"Why did the government not consult with associations and consumers first?" Indonesia's Cell Phone Association deputy chairman, Lee Kang Hyun, said in Jakarta on Thursday as quoted by tribunnews.com.
Previously, the government said that it would impose a 20 percent tax on all cell phone segments in a bid to spur domestic growth.
However, he said that the government would also impose an import duty of between 5 to 15 percent on some components that were not developed in Indonesia.
In addition to that, Indonesia did not have good local component producers at the moment.
He said there were three to four companies, but they were assembling players. (nfo)
