Mataracy
VIP Contributor
What is the meaning of Luxury goods and services?
Luxury goods and services can be describe are goods and services that are considered to be essential by the government and which are consumed by the rich or wealthy class of the society.
Examples of the luxury goods and services are: (1) Private jets (2) Luxury yachts (3) Luxury cars(4)Champagnes,wines and sports (5) Business class/first class tickets on airlines.
Since all these goods or service are consumed by only rich or wealthy class of the society then luxury tax is targeted at the super rich people because they are the ones that are more likely to purchase more expensive items.
Goods and services that are classified as luxury are usually assessed to tax as a percentage of the sales price,but likely at a higher percentage than the regular sales tax or value added tax.
I think what government is doing in the essence is to bridge the gap between the rich people and the poor and to discourage those spending lavishly which can not help the economy of a country.
But can this method really help to discourage the buying of Luxusry goods and services?
Luxury goods and services can be describe are goods and services that are considered to be essential by the government and which are consumed by the rich or wealthy class of the society.
Examples of the luxury goods and services are: (1) Private jets (2) Luxury yachts (3) Luxury cars(4)Champagnes,wines and sports (5) Business class/first class tickets on airlines.
Since all these goods or service are consumed by only rich or wealthy class of the society then luxury tax is targeted at the super rich people because they are the ones that are more likely to purchase more expensive items.
Goods and services that are classified as luxury are usually assessed to tax as a percentage of the sales price,but likely at a higher percentage than the regular sales tax or value added tax.
I think what government is doing in the essence is to bridge the gap between the rich people and the poor and to discourage those spending lavishly which can not help the economy of a country.
But can this method really help to discourage the buying of Luxusry goods and services?
