Luxury Tax Sales To Be Slapped on Luxurious Houses/Apartments

Manado, N Sulawesi, May 29 (Antara) - Luxury sales tax (PPnBM)  would be slapped on  luxurious residential houses and apartments all over the country, an official said. The PPnBM would be 5 percent of the selling price and to be effective as from May 30, Erwin Priyambodo, the chief spokesman of the regional office of the taxation directorate general in  this North Sulawesi capital said. The regulation of the finance minister is to increase the contribution of high income people  to the state revenues, Erwin said here on Friday. He said luxurious houses are ones worth more than Rp5 billion  or having floor space of more than 400 square meters,  and luxurious apartments are ones valued more than Rp5 billion or more than 150 square meters in floor space. He said the regulation is expected to help push up the state tax revenues  to reach the tax revenue target of Rp1,295 trillion this year. Other categorized as luxurious goods are passenger cars worth more than Rp2 billion  or having cylinder capacity of more than 3,000 cc, he said. The finance ministry has also issued regulation on reduction and abolition of sanctions to encourage tax payers to report their SPT  (tax registration certificate)  and to pay tax, he said.