Jokowi Agrees to Extend PPnBM Discount for LCGC Cars, Check Out the Details

JAKARTA, KOMPAS.com – President Joko Widodo approved the extension discount Purchase Tax on Luxury Goods (PPnBM) in 2022. This was stated by the Coordinating Minister for Economic Affairs Airlangga Hartarto.

Airlangga said that the PPnBM discount was included in the 2022 National Economic Recovery (PEN) program.

“The President agreed that the government-borne PPnBM tariff facility (DTP) has also been provided specifically for the automotive sector,” Airlangga said at a press conference, Sunday (16/1/2022).

Also read: Cars Priced at IDR 250 Million and Below Will be Free of PPnBM?

The former Minister of Industry revealed that PPnBM discounts were given for motorized vehicles with prices below Rp 200 million (LCGC). The PPnBM that should be imposed reaches 3 percent.

However, specifically for the first quarter of 2022, the government does not impose a tax (0 percent tax) or gives a 3 percent discount on PPnBM DTP.

“Cars with sales prices below Rp 200 million or LCGC, PPnBM is 3 percent, where in the first quarter the facility is 0 percent,” said Airlangga.

The amount of this tax discount is then reduced little by little in each quarter. In the second quarter, the government only gave a discount of 2 percent so that buyers need to pay PPnBM of 2 percent.

Then in the third quarter, the PPnBM discount was reduced again by only 1 percent. In other words, buyers need to pay PPnBM for the remaining 2 percent.

“And in the fourth quarter, pay in full according to the tariff, which is 3 percent,” said Airlangga.

Not only that, the government also provides PPnBM discounts for automotive with assets ranging from Rp 200 million – Rp 250 million. Usually for this type, the government imposes a 15 percent discount on PPnBM. Discount this will only happen in the first quarter of 2022.

“In the first quarter the discount is 50 percent DTP so you pay 7.5 percent, and in the second quarter you pay full (without PPnBM discount),” said Airlangga.

Also read: Electric Car Incentive, Ministry of Finance Still Studying PPnBM Discount Extension

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