Batam to scrap taxes on luxury items in free-trade zones

The Jakarta Post, Jakarta | Thu, 12/04/2008 2:26 PM  

Four classes of luxury goods -- automobiles, electronics, tobacco and alcohol -- sold on three free-trade islands of Batam, Bintan, and Karimun regions will be tax exempt at the start of the new year, a minister said Thursday. 

Batam, Bintan and Karimun islands were declared free-trade zones earlier this year. 

Trade Minister Mari Elka Pangestu said the implementing regulations establishing the free trade zones would comes into force beginning next year, which was the basis for exempting the luxury goods from both value-added and luxury levies.