Mrs. Sri Mulyani, Automotive Entrepreneurs Ask For Car Tax Discounts Again In 2022

JAKARTA - Chairman I of the Association of Indonesian Automotive Industries (Gaikindo) Jongkie Sugiarto hopes that the government will continue the Luxury Sales Tax (PPnBM) incentive until next year. This is intended to encourage demand from the public so that the performance of the national automotive industry can continue to advance.

According to him, business actors have conveyed this to the Ministry of Industry (Kemenperin).

"Gaikindo has proposed to the government through the Ministry of Industry to extend the PPnBM incentive policy for the automotive industry", he said when contacted by VOI, Thursday, September 2.

However, Jongkie could not confirm whether the proposal would be realized. The reason is that the tax facility was rolled out as a stimulus for the slowing down of car sales due to the COVID-19 pandemic. He also fully handed over this incentive policy to the government.

"What is clear is that we have conveyed, and now we are just waiting for the government's decision whether to extend it (in 2022) or not", he said.

Furthermore, the editor then asked about the scarcity of semiconductor components (chips) in the market which is also used as a part in the production of motorized vehicles. However, Jongkie was reluctant to comment and chose not to speculate about it.

"Maybe these things can be asked directly to the APM (brand holder agent)", he said.

In an earlier report, the Minister of Finance (Menkeu) Sri Mulyani mentioned the direction of the fiscal incentive policy next year. In his explanation, the Minister of Finance did not mention explicitly regarding the certainty of the provision of these facilities.

However, the state treasurer revealed that the provision of incentives would be adjusted to the conditions that occurred at that time, mainly referring to the economic conditions affected by the COVID-19 pandemic.

“If the recovery momentum is getting better and the industry condition is getting better, the incentives will gradually be faced out. (The decision on incentives) will be seen from the data available at the time", he said at a press conference on our State Budget which was broadcast virtually, Wednesday, August 25.

To note, the government has implemented a discount policy for automotive PPnBM of up to 100 percent for new purchases of 1.500cc passenger cars. The regulation is valid until August 31, 2021. Furthermore, this segment will receive a 25% discount facility until December 31, 2021. In addition, the PPnBM discount is also applied to vehicles with an engine cubication of 1.500 cc to 2.500 cc at a rate of 50 percent for the tax period. April to August 2021. Furthermore, for September to December, the discount given is 25 percent.