New Car PPnBM Discount Reaches Rp2.7 Trillion, Here Are Six Manufacturers Enjoying It

JAKARTA - The government through the Deputy Minister of Finance, Suahasil Nazara, has provided the latest report related to the implementation of the government-borne Sales Tax on Luxury Goods (PPnBM) discount policy for four-wheeled passenger vehicles. According to his records, the value of the tax expenditure is in the trillions of rupiah.

"The PPnBM incentives borne by the government that has been utilized by taxpayers reached IDR 2.71 trillion", he said through a virtual channel when he was a keynote speaker in a webinar entitled Tax Reform and State Budget Support in favor of Economic Justice for SMEs, Wednesday, November 24.

According to the Deputy Minister of Finance, this amount is a fiscal facility enjoyed by six automotive manufacturers. Meanwhile, the six companies are PT Toyota Motor Manufacturing Indonesia, PT Astra Daihatsu Motor, PT Mitsubishi Motors Krama Yudha Indonesia, PT Honda Prospect Motor, PT Suzuki Motor Indonesia, and PT SGMW Motor Indonesia.

"(The implementation of PPnBM) Increases the utility of automotive production capacity and as an instrument for leveraging consumption", he said.

For information, the application of PPnBM DTP for the automotive sector is contained in the Minister of Finance Regulation (PMK) Number 31 concerning Sales Tax on Luxury Goods in the Form of Certain Motorized Vehicles Borne by the Government for the 2021 Fiscal Year.

Furthermore, the Deputy Minister of Finance explained that the PPnBM levy discount policy was included in the business incentive cluster in the 2021 National Economic Recovery Program (PEN).

This business incentive cluster itself has realized IDR 62.47 trillion or equivalent to 99.4 percent of the ceiling set at IDR 62.83 trillion.

"This incentive is a form of tax spending where there should be a tax collection but the government does not impose taxes to encourage economic recovery", concluded Deputy Minister of Finance Suahasil.