Indonesia looks at scrapping luxury goods tax on yachts

Aug 10, 2018 by Triton Staff

Indonesia Finance Minister Sri Mulyani Indrawati said her ministry is studying a proposal to eliminate the luxury goods tax, or PPnBM, imposed on foreign cruise ships and luxury yachts arriving in Indonesian waters, according to a statement from Indonesia Investments, an investment firm in the Netherlands.

Luhut Panjaitan, Indonesia’s coordinating minister for Maritime Affairs, said that if the tax were eliminated, government revenue from an expected increase in tourism would likely be double that currently collected in luxury good taxes, Indonesia Investments has reported.