Hyundai Ioniq 5 and Wuling Air EV Prices Plummet by 32% with VAT Discounts


Purchase electric car will get a discount on Value Added Tax (VAT). VAT deductions are given up to 10%, while electric car VAT obligations are 11%.

As a result, VAT is paid only 1%. The only condition is that the domestic component level (TKDN) must be above 40%.

“Cars and electric buses with TKDN above 40% following the Ministry of Industry program are given a 10% VAT incentive so that only 1% of VAT must be paid,” said Minister of Finance Sri Mulyani Indrawati in a press conference at the Office of the Coordinating Ministry for Maritime Affairs and Fisheries, Central Jakarta, Monday (20/ 3/2023).

Sri Mulyani said that with the VAT deduction and the addition of several other fiscal incentives provided by the government, the selling price of electric cars would get a 32% ‘discount’.

“Cumulatively the incentives given from a tax fiscal perspective that have been given to electric vehicles during their estimated useful life will reach 32% of the selling price for electric cars, and 18% for the selling price for electric motorbikes,” said Sri Mulyani.

Fiscal incentives for new electric cars will be realized April 1, 2023. On the other hand, currently electric cars that meet the government’s criteria for receiving new incentives are only the Hyundai Ioniq 5 and Wuling Air EV.

Then with a selling price that experiences a 32% ‘discount’, what is the price of the Hyundai Ioniq 5 and Wuling Air EV?

Especially for the Hyundai Ioniq 5, the price is in the range of IDR 749-859 million. The Prime Standard Range model is currently sold as the cheapest at IDR 749 million.

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With a simple calculation, this means that for the cheapest Hyundai Ioniq 5 price, you can get a discount of up to Rp. 239 million, aka the price is Rp. 509 million.

Meanwhile, for Wuling Air EV, the price starts at IDR 243-315 million. With the same calculation, Wuling electric cars can get a discount of IDR 77 million or IDR 165 million for the cheapest Wuling Air EV price.


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