Luxury Tax Might be Charged on Smartphones

JAKARTA (Yosefardi) – Fiscal Policy Review Board (BKF) of finance ministry is reviewing a proposal to charge luxury tax on smartphones.
Acting head of BKF Bambang Brodjonegoro said the luxury tax might take sometime to be effective.
Amount of luxury tax to be charged depends on technology content of the smartphones. “The more complicated technology content of the smartphone, the higher will be the rate of luxury tax imposed,” Bambang said.
Indonesia’s import of smartphones reached US$927.6 million in the first five months of 2013, down 17.2% from the corresponding period of 2012.
Indonesian Electronics Business Association, however, warns the government that luxury tax would only boost smuggling of smartphones into the market.