Luxury Taxes and Consumer Behavior on Branded Goods: Case Study in Indonesia Market

Indonesian government issued PMK (Minister of Finance Regulation) No. 106/PMK.010/2015 toabolish PPnBM types for branded goods. The background of the issuance of this regulation is because ofthe fast status of goods becoming non-luxurious because they are widely consumed by the public and thegovernment wants to maintain people's purchasing power and encourage domestic industry where severaltypes of goods have been produced domestically. This study aims to determine and analyze the effect ofeliminating PPnBM branded goods on consumer behavior in the Surabaya area. The population in thisstudy are people who live in Surabaya and have branded goods. Based on the results of the tests carriedout, the elimination of PPnBM on branded goods has an influence on consumer behavior. It can beconcluded that the lack of understanding of branded goods consumers regarding the implementation of thisabolition makes how they choose, buy, use, or regulate branded goods more influenced by other factors.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-08-11
DOI
https://doi.org/10.5281/zenodo.16795716
Primary Topic
Consumer Behavior and Marketing Influence
Type
article
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0.00
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article

Luxury Taxes and Consumer Behavior on Branded Goods: Case Study in Indonesia Market

Zenodo (CERN European Organization for Nuclear Research)
Consumer Behavior and Marketing Influence
article

Luxury Taxes and Consumer Behavior on Branded Goods: Case Study in Indonesia Market

article en

Abstract

Indonesian government issued PMK (Minister of Finance Regulation) No. 106/PMK.010/2015 toabolish PPnBM types for branded goods. The background of the issuance of this regulation is because ofthe fast status of goods becoming non-luxurious because they are widely consumed by the public and thegovernment wants to maintain people's purchasing power and encourage domestic industry where severaltypes of goods have been produced domestically. This study aims to determine and analyze the effect ofeliminating PPnBM branded goods on consumer behavior in the Surabaya area. The population in thisstudy are people who live in Surabaya and have branded goods. Based on the results of the tests carriedout, the elimination of PPnBM on branded goods has an influence on consumer behavior. It can beconcluded that the lack of understanding of branded goods consumers regarding the implementation of thisabolition makes how they choose, buy, use, or regulate branded goods more influenced by other factors.

Zenodo (CERN European Organization for Nuclear Research)
Industry, innovation and infrastructure
Openalex Percentile: Top 45%
Consumer Behavior and Marketing Influence
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