Jakarta, CNBC Indonesia – The government’s plan to provide Sales Tax on Luxury Goods (PPnBM) incentives for cars with an engine capacity of up to 2,500 cc is increasingly mature. However, incentives are not in the form of exemptions, only discounts.
Quoting a written statement from the Ministry of Industry, currently the PPnBM rate for cars of 1,501-2,500 cc is 20% for those with 4 × 2 drives and 40% for 4 × 4 cars. Later this rate will be lowered.
The current proposed scheme is Government Borne PPnBM (DTP) of 50% for the first phase and 25% in the second phase for 4×2 cars. So in stage I the rate is 10% and stage II is at 15%.
Then for 4×4, the proposal is PPnBM DTP 25% in stage I and 12.5% in phase II. This makes the PPnbM paid by consumers is 30% in stage I and 35% in phase II.
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Source: Ministry of Industry- – |
If this scheme is decided upon, it will be somewhat different from the PPnBM incentive for cars with engine capacities of up to 1,500 cc. Phase I is PPnBM fully borne by the government (100%) for the tax period until May 2021.
Then stage II is reduced by 50% which will take effect in June-August 2021. The last stage is that the government only bears PPnBM of 25%, this applies in September-December 2021.
Regarding local content, it is different. For cars with an engine capacity of up to 1,500 cc, the Domestic Content Level (TKDN) is required to be at least 70%, while for 2,500 cc it is proposed at least 60%.
WellIt seems that the government’s reason for not providing PPnBM exemption incentives for 2,500 cc cars is acceptable. Because sales of this type of car are still not bad, they can grow even without incentives.
Quoting data from the Association of Indonesian Automotive Industries (Gaikindo), sales of sedan type cars with engine capacities of 1,500-3,000 cc in February 2021 were 439 units. It rose in the previous month to 335 units.
As for the 4×2 type, sales of cars with engine capacities of 1,501-2,500 cc last month were 6,780 units, up from 5,896 units in January 2021. Then for the 4×4 types, sales of cars with engine capacities of 1,501-3,000 cc in February 2021 were 329 units, up from January. 2021, totaling 171 units.
So in fact, even without PPnBM incentives, the sales of this big car could go up. It is hoped that with the PPnBM exemption, which causes prices to fall to tens of millions of rupiah, sales will be boosted even more.
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