The Indonesian representatives of Apple Inc, Samsung Electronics and other members of a local industry group said smartphone sales could fall by as much as 50 percent if the government imposes a tax on luxury models.
The government is considering a 20 percent tax for smartphones retailing at or above 5 million rupiah (USD430), which would make Indonesia the most expensive country in Asia to buy an Apple iPhone 5s.
The tax would be part of efforts to protect domestic brands such as Evercoss Mobile Phone and MITO Mobile, and slow a surge in imports that has caused a deficit in the country’s current account.
(Source: Jakarta Globe )