Jakarta, CNBC Indonesia – Sales Tax Discount on Luxury Goods (PPnBM) of up to 100% is proposed by the Ministry of Industry to apply permanently. The program, called PPnBM borne by the government, has succeeded in raising new car sales since early March 2021. Unfortunately, it is only valid until the end of 2021.
However, the Minister of Industry Agus Gumiwang proposed to the finance ministry to implement this policy to stimulate the local automotive industry in the long term.
Now, there is a proposed change, namely the minimum requirement is local purchase or local content of components up to 80%. Of course, not all cars that previously enjoyed 100% PPnBM can again enjoy this policy, among other things, the potential for the Avanza and Xenia may not be available.
“The government is preparing it carefully by taking into account the costs and benefits, as well as compiling the time frame,” Agus said some time ago.
It has not been mentioned what model specifications will receive a 100% PPnBM discount. In the previous period, only 1,500 cc cars and below received this policy. While the 1,500 – 2,500 cc engines vary in the amount of the discount, the largest discount for PPnBM is 50%.
In the data attached to the Decree of the Minister of Industry Number 1731 of 2021 concerning Motorized Vehicles with PPnBM on the Delivery of Taxable Goods Classified as Luxury borne by the Government for Fiscal Year 2021, there are not many car models with 80 percent local content.
It was recorded that only 11 models met 80 percent local content, while 25 other cars that entered the PPnBM relaxation program did not meet the requirements.
Low Cost Green Cars (LCGC) are of course the most popular models, because the local purchases are above 80%, for example Brio Satya, Agya, Calya, Ayla, and Sigra. There are also MPV and LSUV namely i HR-V 1.8, Veloz, Innova 2.0, Xpander, Xpander Cross, and Livina.
Minister of Industry Agus stated that the exemption of PPnBM for the automotive industry needs special attention. Because, currently there are 21 industrial companies of four-wheeled vehicles and more with a production capacity of 3.5 million units per year.
The following is a list of cars that previously entered the PPnBM program, now they have the potential to fail if they are permanent.
Toyota
Yaris (74,4 %)
Vios (74.4%)
Feel (72.9%)
Innova 2.4 (70 %)
Fortuner 4×2 (70 %)
Fortuner 4×4 (70 %)
Advances (78.9%)
Raize (70 %)
Rush (74,8 %)
Daihatsu
Xenia (79,2 %)
Grand Max (77.1%)
Luxio (70.4%)
Terios (75.2%)
Rocky (70 %)
Honda
Brio RS (78 %)
Furniture (75%)
BR-V (76 %)
CR-V 1.5 Turbo (62 %)
HR-V 1.5 (70 %)
CR-V 2.0 (62 %)
City Hatchback (70 %)
Suzuki
Ertiga (70.5%)
XL7 (71,5%)
Wuling
Compare (70,5%)
Form (70.4%)
Read more at Rows of Cars Threatened Not to Get a Permanent 0% PPnBM Discount: There’s Avanza-Xenia
(Hi Hi)
– .
