The Ministry of Finance is still reviewing the proposed sales tax exemption on luxury goods (PPnBM)

ILLUSTRATION. Head of the Ministry of Fiscal Policy Agency, Febrio Nathan Kacaribu

Reporter: Yusuf Imam Santoso | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance (Kemenkeu) Febrio Kacaribu said that his party is still studying and calculating the impact of the sales tax exemption on luxury goods (PPnBM).

Previously, Minister of Industry (Menperin) Agus Gumiwang Kartasasmita asked the Ministry of Finance to exempt tax on new cars. The proposal aims to help the automotive industry, which is currently growing negatively due to the corona pandemic.

“We have proposed to the Minister of Finance to relax the 0% new car tax until December 2020,” said Agus some time ago.

According to Agus, if the sales tax on luxury goods (PPnBM) is exempted by the end of this year, it will increase people’s purchasing power to buy cars because prices are low. Agus said car sales this year fell sharply.

Also Read: The 0 percent car tax plan is actually hurting the automotive industry today

Responding to this, Febrio said, the Ministry of Finance would look at it from the point of view of the impact of PPnBM relaxation on new cars. He said the government had an option between exempting or giving tariff cuts.

“We’ll see the point of view, how much we give. Then how much will this boost the purchase of cars then how much impact will it have to hold back the correction of GDP growth. We are still studying this, we cannot announce it yet. “We will announce it as soon as it is finished,” Febrio said in a press conference, Thursday (1/10).

Previously, the Ministry of Finance, through the BKF and the Directorate General of Customs and Excise (DJBC), had planned to remove PPnBM for new cars. This is because this fiscal instrument is considered outdated.

So, what the fiscal authorities will do since the end of 2018 is to remove PPnBM on new cars and impose excise on fuel oil (BBM). The goal is to control consumption, namely fuel. Thus, the price of fuel is getting more expensive, and it is hoped that the use of motorized vehicles will decrease.