The Effect of the Imposition of Value Added Tax and Sales Tax on GoodsLuxury for Consumer Purchasing Power

ABSTRACT : Taxes are the largest source of state revenue which is used to carry out development and createpublic welfare. The purpose of this study is to obtain empirical evidence regarding the effect og VAT and SalesTax on Luxury Goods on the purchasing power of motorized vehicle consumers at PT. Duta Intika. Thisresearch was conducted at PT. Duta Intika. The method used was purposive sampling method. The number ofsamples was calculated using the Slovin formula in order to obtain a sample of 85 respondents. The data wascollected through a survey method using a questionnaire. The analysis technique used is multiple linearregression. Based on the analysis, it was found that VAT and Sales Tax on Luxury Goods had a positive effecton the purchasing power of consumers at PT. Duta Intika. This shows that the higher the selling value of avehicle that is subject to VAT and Salex Tax on Luxury Goods will affect consumer purcashing power.

Keywords :VAT, Salex Tax on Luxury Goods, Purchasing Power.