Jakarta, CNBC Indonesia – Discourse to cut tax on new car purchases to zero percent has become a hot topic this week. The public seems enthusiastic about the policy, hoping that car prices can go down and be much cheaper than the current price.
This discourse was originally put forward by the Minister of Industry (Menperin) Agus Gumiwang. He admitted that he had filed for relaxation of a tax on the purchase of a new car of 0%.
This effort is expected to stimulate the automotive market and at the same time encourage the growth of the automotive sector in the midst of the Covid-19 pandemic.
“We have proposed to the Minister of Finance to relax the 0% new car tax until December 2020,” said Agus earlier this week, Monday (14/9).
He has submitted this suggestion since last week, namely during the National Chamber of Commerce meeting on Thursday (10/9). The goal is to accelerate recovery.
“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 can increase. The tax relaxation can be applied so that it can help the growth of the manufacturing industry in the automotive sector,” he said.
Chairman of the Association of Indonesian Automotive Industries (Gaikindo) Yohannes Nangoi then responded enthusiastically to the discourse. According to him, this incentive will have a broad impact on the automotive industry and drive car prices down and make people’s purchasing power improve again.
“For example, for PKB (motor vehicle tax) and transfer fee for motorized vehicle names (BBNKB). For example (Toyota) Avanza can go down by Rp. 15 million -20 million depending on the model, not bad,” he told CNBC Indonesia, Tuesday (9/15 ).
The drop in prices is if the government does not collect taxes. It can be seen from the on the road price which is more expensive because it includes tax costs, while the off the road price does not include tax payments. Yohannes hopes that later the off the road price will be an official price that can already take to the streets.
“So we discussed with the Ministry of Industry. There are two things, first we ask PPNBM for luxury goods tax relief for taxes produced in Indonesia. Second, we also want on the road prices to be relaxed. PKB, transfer fees can support the government. address to the Ministry of Home Affairs. PPnBM to the Ministry of Finance is coordinated by the Ministry of Industry under the minister directly, “he said.
However, Yohannes reminded him that this plan was still under discussion. Communication with the government continues, both central and local governments. He hopes that this relaxation can be provided until the first quarter of 2021
“In triggered by Indonesia, how come the market is so sluggish, while the automotive industry has to endure not to layoffs, the company is closed. They said that if the government can assist the government, we don’t want to burden the government too much, for example we ask for help to give money, no, “he said.
This tax relaxation is divided into elements. For local governments, namely PKB and BBNKB, while for the central government, they are value added tax (PPN) and sales tax on luxury goods (PPnBM).
Secretary General of the Indonesian Automotive Industry Association (Gaikindo), Kukuh Kumara, believes that the impact will have an effect on increased sales. However, he could not yet estimate how much the increase would be if he bought a new car at 0% tax. As an illustration, the value of BBNKB alone reaches 12.5% of the selling value of the vehicle, not yet PPnBM which can reach 10% for certain vehicles.
“On average, most of our people buy motorized vehicles at prices below Rp. 300 million. If the discount, reduction, relaxation increases, they will flock to it. Moreover, public transportation is limited,” Kukuh told CNBC Indonesia, Wednesday (16 / 9).
The hope is that if this is realized, it will raise sales, whose growth has slowed since the easing, until the implementation phase of the PSBB, especially in DKI Jakarta.
Car sales in August were recorded at 37,277 units. It is still far from the normal time where the average sales per month reached 80-90 thousand units. It can be seen from the previous data, on an annual basis, August sales this year still fell 58% from August 2019 which had penetrated 90,568 units.
He also revealed that many automotive derivative industries are waiting for this policy to be passed, because the effect is very large
“Big automotive companies have a lot of carriages. Starting from tier 1, tier 2 and tier 3 to MSMEs. Thousands of vendors, including other services, after sales workshops are moving again. This must be maintained,” he said.
To safeguard this, apart from communicating with the central government, letters of submission of tax reduction have also been given to a number of regions. This is because local governments collect motor vehicle tax (PKB) and motor vehicle name transfer (BBNKB). Kukuh said that there were four provinces that had given positive signals.
“Those who responded positively were, for example, West Java, then Yogyakarta, South Sumatra, and Central Kalimantan. They did it even though it was not what we expected,” he said.
– .
