Indonesian government courts superyacht owners by removing luxury tax

Ian Molyneaux
By Ian Molyneaux December 11, 2018 17:09

Indonesian government courts superyacht owners by removing luxury tax

The Indonesian government is hoping to entice superyachts to visit the country by removing tax barriers for owners.

‘The luxury goods tax’ will be scrapped immediately for yachts entering Indonesian waters. The finance ministry indicated in July that due to superyachts being treated as ‘luxury goods’ they could be subjected to tax up to 75%.

The government believes that the foreign yacht market could bring in between $500-$1000 dollars a day per yacht, with a month required to sail around the country’s islands.

The CAIT (Cruising Application for Indonesian Territory) will also be relaxed significantly. The application can currently take weeks to be approved, but in future the process will take only a few hours.

The decision by the government reflects a strong growth in the superyacht industry across the Pacific Ocean with Australia and Fiji also planning for an increase in luxury yacht visitors.

With the increasing popularity of explorer yachts and a more adventurous mindsets owners are choosing more ambitious experiences than the traditional Mediterranean or Caribbean.

Ian Molyneaux
By Ian Molyneaux December 11, 2018 17:09

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