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Indonesia starts implementing 12 pct VAT on luxury goods, services

JAKARTA, Jan. 1 (Xinhua) — Indonesia on Wednesday started to impose a 12 percent value-added tax (VAT) on luxury goods and services, a 1 percent hike. This has reassured the public, who were previously worried that the increase would also apply to basic necessities.

The goods subject to the 12 percent VAT included private jets, cruise ships, yachts, luxurious houses, and other items classified as luxury goods.