Retail in Asia

In Markets

Indonesia removes luxury tax for most goods

Indonesia is exempting most goods from a luxury tax in a bid to boost household consumption and revive faltering economic growth, the finance minister said on Thursday.

Growth in Southeast Asia’s largest economy has slipped to its most sluggish pace since 2009, and in the first quarter consumption languished at 5 percent, the slowest for nearly four years, as disposable incomes were squeezed.

There is an abundance of evidence that consumption, which accounts for about 55 percent of gross domestic product (GDP), remains weak and retailers are expecting a slow Ramadan this year.

(Source: Jakarta Globe )