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Government Incentives for Battery-Based Electric Vehicles Implementation in Indonesia

Jakarta

The government provides incentives in the form of Government Borne Sales Tax on Luxury Goods (PPnBM) (DTP) on the import and/or delivery of certain four-wheeled Battery-Based Electric Motor Vehicles (KBLBB).

These provisions are regulated in Minister of Finance Regulation (PMK) Number 9 of 2024 which will come into effect on February 15 2024. Director of Extension, Services and Public Relations Dwi Astuti said that the provision of this incentive was motivated by a government program related to the transition from fossil energy to electrical energy.

Apart from that, Dwi also conveyed that the provision of PPnBM DTP incentives aims to increase the growth of the national automotive industry and support the acceleration program for battery-based electric motorized vehicles.

Quoted from a written statement from the Directorate General of Taxes, Friday (23/2/2024), PPnBM DTP of 100% of the PPnBM payable is given for the import of certain Completely Built-Up (CBU) four-wheeled KBLBB and the delivery of Completely Knocked-Down (CKD) four-wheeled KBLBB ) by business actors. PPnBM DTP is given for the January 2024 Tax Period to the December 2024 Tax Period.

For example, PT Mobil Electric imported certain CBU four-wheeled KBLBB with an import value of IDR 30,000,000,000.00 in February 2024. On this import, 11% VAT (Rp. 3,300,000,000) and 15% PPnBM (Rp. 4,500,000,000) are payable. .

“Thus, PT. MobilElectric only pays IDR 33,300,000,000.00. If the PPnBM on KBLBB imports is not given a PPnBM DTP incentive, then PT. MobilElectric will pay the import price of IDR 37,800,000,000,” explained Dwi.

(ily/rrd)

2024-02-23 09:37:06
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