Indonesia: Govt to Issue PPnBM Regulation on Electric Cars

• Feb 27, 2018

TEMPO.CO, Jakarta – The Minister of Industry Airlangga Hartarto said the finalization regulation of the Sales Tax on Luxury Goods or PPnBM on electric cars will soon be issued. The decreasing PPnBM which is being studied are the zero percent and the import duty of five percent.

Airlangga said it was intended to encourage the development of the national electric car industry. In addition, he expects the industrial market will be more widespread and affordable by many people.

He explained the technology development towards electric vehicles is needed. However, according to him, the government and industry players need time to prepare the regulation and legal protection, as well as supporting infrastructure.

Airlangga hopes it can support the deepening program structure of the national automotive industry. “It has already become part of the roadmap for the development of national motor vehicles,” he said.

Meanwhile, for the sedan type Airlangga said it will no longer be categorized as luxury goods, with lower taxes.

Director General of Metals Industry of Transportation Equipment and Electronics Harjanto added previously the import duty for electric cars reached 50 percent.

Executive Director of the Center for Indonesia Taxation Analysis (CITA) Yustinus Prastowo said the Ministry of Finance should encourage the revision of the PPnBM regulation on electric cars to be completed sooner.

Yustinus said the acceleration of the revision of the regulation is needed by the industry.

According to Yustinus, incentive schemes for the automotive industry are needed to foster long-term potential. “So it is encouraged the use of more advanced technology but with lower taxes.”

In addition to the automotive industry, Yustinus said other labor-intensive industries also need to become the government’s attention in order to get both fiscal incentives and non-fiscal for the production of electric cars.

Source: https://en.tempo.co/read/news/2018/02/27/056916081/Govt-to-Issue-PPnBM-Regulation-on-Electric-Cars