Proposed Luxury Goods Sales Tax on Imported Mobile Phones in Indonesia
Both Indonesia's Ministry of Industry and Trade propose to impose a luxury goods sales tax (PPnBM) of 20 percent on all imported mobile phones. Previously, the Ministry of Industry said the new tax rule - if approved - would only apply to cellular phones with a price tag of at least IDR 5 million (USD $442). Now, however, all imported cell phones will be affected. This new tax policy aims to curb imports of mobile phones (thus impacting positively on the trade balance) and to support the development of a domestic mobile phone industry.