Official! Sri Mulyani Releases PMK Incentives For PPnBM For Large Cars Of 2,500 CC, Less Discounts On 4x4 Vehicles

JAKARTA - Finance Minister Sri Mulyani finally issued a Minister of Finance Regulation (PMK) related to relaxation of Sales Tax on Luxury Goods (PPnBM) on Thursday night, April 1, 2021.

The policy is stated in PMK Number 31 / PMK.010 / 2021 concerning Sales Tax on Goods Classified as Luxury in the Form of Certain Motor Vehicles.

This regulation is also the legal basis for the application of tax incentives in the form of discounts or discounts on previously imposed taxes.

Based on documents received by VOI today, one of the focuses of this policy is the provision of PPnBM rates for vehicles with engine cubication of more than 1,500cc to 2,500cc.

"The PPnBM borne by the government is 50 percent of the PPnBM payable for the April 2021 Tax Period to the August 2021 Tax Period," reads Article 5 Paragraph 2 Point A.

Then, in Point B it is revealed that the incentive of 25 percent of the PPnBM is payable for the tax period September 2021 to the tax period December 2021.

This rule applies to gasoline and diesel passenger vehicles with a 4x2 drive of less than 10 passengers.

Meanwhile, for 4x4 diesel or petrol engines with less than 10 passengers, the incentives given are lower.

"25 percent of the PPnBM payable for the Tax Period of April 2021 until the Tax Period of August 2021," wrote Article 5 Paragraph 3 Point A.

"12.5 percent of the PPnBM payable for the September 2021 Tax Period to the December 2021 Tax Period," wrote Article 5 Paragraph 3 Point B.

Meanwhile, the two types of vehicles must meet the criteria for a domestic content level (TKDN) of at least 60 percent.

The editorial team noted that this TKDN requirement was only able to be fulfilled by the Toyota automotive manufacturer through its two products, namely Fortuner and Innova.

Meanwhile, other manufacturers, namely Mitsubishi and Honda, actually have products with suitable engine cubes but are known to not meet the TKDN criteria.

In initial calculations, Toyota Innova is expected to receive a discount of around Rp. 21 million for the lowest type and Rp. 32 million for the highest type.

Meanwhile, the Toyota Fortuner is believed to receive a discount in the range of IDR 33 million for the lowest type and IDR 40 million for the highest type.

The PMK itself was signed directly by the Minister of Finance Sri Mulyani on March 31, and was officially promulgated on April 1, 2021.

"This Ministerial Regulation comes into force on the date of promulgation," concluded the regulation.