The Indonesian government has commissioned a study into the proposal to scrap the luxury goods tax (PPnBM) on the arrival of foreign-registered cruise liners and superyachts.
A press release circulated by Indonesia Investments noted that the South East Asian nation’s finance minister Sri Mulyani Indrawati had confirmed a study was taking place. According to the ministry’s current regulation No. 35/PMK.010/2017 (PMK-35), luxury yachts are eligible to tariffs up to 75% as they are classed as luxury goods.
In the press release, Luhut Panjaitan, Indonesian coordinating minister for maritime affairs, claimed that the government collects approximately $200,000 in taxes through the current regulation. If internal calculations are correct, the revenue from the tourism boost could be as high as $414 million if the tax was slashed to zero.
Since taking office, Indonesian president Joko Widodo has made great strides to boost the country’s tourism industry. The sector is the second biggest earner for the country behind palm oil exports.
As Asia Pacific Boating note, Captain Jimmy Blee of Asia Pacific Superyachts Indonesia said, “If this goes through, it will be great news for the visiting superyachts and other vessels, as according to the press release scrapping the luxury goods tax (PPnBM) on foreign cruise ships or luxury yachts. This would encourage the arrival of ships and yachts to Indonesia.”
For more information, visit Asia Pacific Superyachts.