Top! Sri Mulyani will give 0% tax for 2,500 cc cars

Jakarta, CNBC Indonesia – Finance Minister Sri Mulyani Indrawati said that her party is currently reviewing the expansion of the sales tax coverage on luxury goods (PPnBM) for new car sales. Where currently the 0% tax applies which began on March 1, 2021.

Sri Mulyani explained that this expansion was mainly for the capacity of the car’s cylinder contents. Previously, only cars up to 1,500cc could take advantage of the 0% incentive, now it will be increased to a maximum of 2,500cc.

“So it is currently making improvements, those above 1,500 cc may be up to 2,500 cc. This will later address the issue of several requests for cars over 1,500 cc in the PPnBM relaxation given,” he said in a working meeting with Commission XI, DPR RI, Monday (15/3/2021).

According to him, this is in accordance with the direction of President Joko Widodo (Jokowi) who wants cars up to 2,500 cc to take advantage of 0% PPnBM. However, cars with a capacity of 2,500 cc can get tax incentives during this pandemic, must have a Domestic Component Level (TKDN) of at least 70%.

“As long as the TKDN is 70%, that might be a consideration,” he explained.

Meanwhile, the Government has determined to provide incentives for the motorized vehicle sector until the end of the year. Where the tax incentive rates are given progressively for the purchase of new cars.

For March-May 2020, the tax discount is 100% or 0%. Then, June-August 50% discount and in September-December 25% discount or pay 75% tax.

[Gambas:Video CNBC]

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