Indonesian Government Set To Drop the Luxury Tax On Yachts
The Indonesian government is currently considering plans to do away with the tax in an effort to boost the country's tourism trade, Indonesia Investments reports. "Scrapping the PPnBM on foreign cruise ships & luxury yachts would encourage the arrival of ships and yachts to Indonesia, hence boost the number of foreign tourists and hence would enable authorities to collect more foreign exchange earnings from the tourism industry." - Indonesia Investments.
Luhut Panjaitan, Indonesian Coordinating Minister for Maritime Affairs, said the government collects around IDR 3 billion (approx USD $200,000} PPnBM per year from foreign cruise ships & luxury yachts. They calculate government revenue could see an additional IDR 6 trillion {USD $414 million} increase if the tax was cut.
Luhut stressed that after the regulation was issued, there were no more PPnBM levies on foreign yachts coming to Indonesia. He {Luhut) said that after PPnBM for yachts was abolished the government would look for other ways to boost revenue and increase tariffs for a number of tourism objects. This regulation is officially valid in conjunction with the promulgation of the Minister of Finance Regulation {PMK) 92/2019 as of June 19, 2019, this rule changes several
provisions contained in the previous regulation, namely PMK 253/2008 concerning certain corporate taxpayers {WP} as income tax collectors from buyers selling luxury goods.