REPUBLIKA.CO.ID, JAKARTA -- The Finance Ministry is planning to impose sales luxury taxes (PPnBM) on expensive products such as bags, wrist watches and shoes, said Deputy Minister for Finance Mardiasmo.

"This is still a proposal. We hope that luxury taxes will also be imposed on expensive goods such as bags, wrist watches and shoes," the deputy minister said at the Parliament building here on Wednesday (21/1).

He said branded products such as hand bags with a nominal rice of over Rp20 million and shoes with a price of Rp10 million were likely to be liable to new luxury tax regulations.

Mardiasmo said that if the proposal was accepted the finance minister would issue a regulation on that effect.

"In the past, bags, wrist watch and shoe were not considered luxury goods. So, we will revise the minister's regulations with regard to luxury goods taxes," he said.

Besides planning to impose luxury taxes on branded products, the ministry of finance will also revise regulations on the sales taxes on property because the sales of apartments are now the rapid rise.

"The price of apartments continue to increase. We will levy taxes of apartment units with a price of over Rp5 billion, but it could also be apartment units with a price of Rp2 billion each," he said.

The deputy finance minister stated that the new regulations could be issued in the first quarters of 2015 so that the government could focus on boosting tax income which was set at Rp1,484.6 trillion in the revised state budget.

The government set the tax target which consists of Rp1,244.7 trillion non-oil commodity taxes, Rp50.9 trillion oil gas sales taxes and Rp188.9 trillion customs and excise taxes.

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