Sri Mulyani Calls Motor Vehicle PPnBM Incentives To Boost Car Sales By 72 Percent

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani stated that the sales tax incentive for luxury goods borne by the government (PPnBM-DTP) has a significant impact on car sales and production.

This incentive succeeded in providing a jump in consumption or purchases of motorized vehicles in March by 72.6 percent compared to the previous month, or 10.5 percent on a year-on-year (yoy) basis.

"We hope that the purchase of this car will continue to encourage consumption, especially the upper middle class households who have been restrained by the pandemic so far, so that they can contribute to economic growth," he said in a virtual press conference for our APBN, Thursday, April 22.

For information, the PPnBM incentive targets 4x2 type cars with several specifications, including engine capacities of up to 2,500cc. In line with the level of public consumption, from the production side, it also shows a surging demand.

"This means that the stimulus provided by the government through fiscal can be responded positively and significantly, both from the consumption side and from the production side," he said.

It was also stated that car sales in March 2021 had approached the average sales in 2019 before the pandemic hit Indonesia. This condition is expected to continue to increase in the following months.

"This means showing we are starting to move towards a situation of normalization. We hope this will continue, "added the Minister.

For information, the total value of PPnBM-DTP incentives for motorized vehicles can only be known after the report that will be submitted by taxpayers (WP) at the end of April. Likewise with Value Added Tax (VAT) incentives that target the property sector.