Jakarta, CNBC Indonesia – The Ministry of Industry (Kemenperin) is pushing for a tax reduction of up to 0% on new cars. The price of new cars is predicted to be in freefall, cars that cost Rp. 200 million are predicted to drop to Rp. 100 million.
Chairman of the Association of Indonesian Automotive Industries (Gaikindo), Yohannes Nangoi, said that the incentive would have a broad impact on the automotive industry, because the price of new cars would drop drastically.
“For example, for the PKB (motor vehicle tax) and the transfer fee for motorized vehicle names (BBNKB). For example the Avanza can go down by Rp. 15 million-20 million depending on the model, not bad,” he told CNBC Indonesia, Tuesday (15/9).
BBNKB has so far been withdrawn by each province. Not to mention the tax write-offs that can be done by the central government, such as the Luxury Sales Tax (PPnBM). Yohannes hopes that later the price of the road for a car will be an official price that can already take to the streets.
Especially if the 10% Luxury Sales Tax (PPn BM) is removed, then the price of a car in the same class as Avanza can be even cheaper, and it can be reduced by up to Rp 40 million. Currently, the lowest price for the Avanza type is Rp. 197 million (on the road), if calculated by reducing the PPnBM until there is no BBNKB from the Motor Vehicle Sales Value (NJKB), the Avanza price could be closer to Rp. 100 million.
“So we discussed with the Ministry of Industry. There are two things, first we ask 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 in discourse. Communication with the government continues, both central and local governments. He hopes that this relaxation can be provided until the first quarter of 2021
“Indonesia has a very sluggish market, while the automotive industry has to endure not to layoffs, the company is closed. Their friends in Gaikindo said that if they could be supported by the government, we don’t want to burden the government too heavily, for example we ask for help to give money, no, “he said.
This tax exemption effort has been 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,” he said, 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 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.
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