Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) agreed to provide relaxation for the luxury sales tax (PPnBM) for the automotive sector during 2021, especially for cars under 1500 cc starting March 1, 2021.
This policy will have a significant impact on future car sales. Understandably, in the last few months, car sales have not reached the normal level of around 90 thousand units / month due to the impact of the Covid-19 pandemic.
“January 2021 is lower than last December. January wholesales at 52,910 units, while retail is 53,996 units,” said Kukuh Kumara, Secretary General of the Association of Indonesian Automotive Industries (GAIKINDO). CNBC Indonesia, Thursday (11/2/21).
If you compare it to the December 2020 period, then there was a quite deep decline in January 2021 yesterday. Wholesales in December 2020 were at 57,129 units, while retail was even higher at 68,698 units.
With the PPnBM relaxation, sales are forecast to increase sharply. It is not impossible, the numbers can return to normal times, even more than 100 thousand units per month. Moreover, the money belonging to some of the middle to upper class society is getting fatter in the bank, aka not being spent a lot.
“We, from the brand holder agent (APM), are trying hard to increase production back to normal times, because it is necessary effort which is special too, “said Chairman of Gaikindo Yohannes Nangoi.
With the PPnBM relaxation scenario carried out in stages, it is calculated that there can be an increase in production which will reach 81,752 units. With this relaxation, the estimated additional output of the automotive industry will be able to contribute to state revenue of IDR 1.4 trillion.
“This policy will also affect state revenues, which are projected to have a revenue surplus of Rp1.62 trillion,” said Coordinating Minister for the Economy Airlangga Hartarto.
Minister of Industry Agus Gumiwang confirmed when asked about the PPnBM relaxation scheme with a scenario of 0% PPnBM (March-May), 50% PPnBM (June-August), and 25% (September-November). This means that if the car initially has to be subject to 10% PPnBM, then if there is a PPnBM discount of up to 0%, then PPnBM is not imposed.
“That’s right, and for CCs below 1500 and National Production,” said Agus to CNBC Indonesia.
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