Jakarta, CNBC Indonesia – The new car market will be boosted by the 0% tax relaxation policy. This policy is expected to be able to encourage the car industry in the midst of the Covid-19 pandemic which has hit sales.
However, there are a number of other sectors, namely motorbikes, will the motorcycle industry get the same incentives?
“For this (0% tax incentive), as far as I know, only cars and the type of PPnBM are. It’s good to ask the Ministry of Industry to submit it,” said Public Relations of the Indonesian Motorcycle Industry Association (AISI) Ahmad Muhibbuddin to CNBC Indonesia, Wednesday (16/9).
Apart from the car market, the motorcycle industry also experienced a sharp sales correction. In fact, in May 2020, sales were only 21,851 units, even though the same period in 2019 had reached 561,657 units.
To increase this stretch, the same incentives are needed. However, Muhibbudin was reluctant to comment further regarding whether he hopes that his industry will also receive tax incentives from the government.
Industry Minister Agus Gumiwang proposed a 0% tax after seeing a sharp drop in new car sales in Indonesia. He submitted a tax incentive for the new car to Finance Minister Sri Mulyani. The goal is to accelerate the economic recovery that was hit by the pandemic.
“We understand that the automotive industry has a lot of derivatives. Tier 1 and tier 2 are many, so it needs to be given attention so that people’s purchasing power will increase. The tax relaxation can be applied so that it can help the growth of the manufacturing industry in the automotive sector,” he said.