Note! These Two Important Points Determine The Extension Of The 2022 Car PPnBM Discount

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) confirmed that until now the government has not decided to continue the fiscal incentive in the form of discounts on the Luxury Goods Sales Tax (PPnBM) for cars for the 2022 period.

Head of the Fiscal Policy Agency (BKF) Febrio Kacaribu said that there are two main assumptions that form the basis for disbursing tax facilities for the automotive industry.

"In 2021 (when the PPnBM discount was initially applied) third-party funds in banking grew by double digits and amounted to more than Rp. 2,000 trillion and was dominated by savings from the wealthy. So that's when this program was launched and it was a success,” he said in a webinar, Wednesday, January 12.

According to Febrio, apart from encouraging funds deposited in the banking sector to be channeled to the consumption sector, the PPnBM discount has actually been able to fulfill the government's expectation to restore the automotive industry and its derivatives through increased car sales.

"The economic sector in this industry has recovered and that is our goal," he said.

Meanwhile, the second point to be considered is the consistency of fiscal policy in the automotive industry that already existed, especially for environmentally friendly vehicles.

“We know that so far there has been an incentive program for low-emission cars. Where for electric cars we provide 0 percent PPnBM incentives. Then, if the emission increases, the car will be subject to a tax of 3 percent to 15 percent,” he said.

For this reason, Febrio said the government was very careful in setting tax levy relief in order to keep the automotive sector conducive.

"Well, what we have to maintain is consistency, lest when the economy has recovered, there will be wrong policies. Because what we also want is to bring in investment for transportation and boost the economy as well,” he explained.

As previously reported by VOI, the PPnBM discount of up to 100 percent for new car sales has ended on December 31, 2021. This relaxation has made sales of four-wheeled vehicles shoot up quite high.

Data from the Ministry of Finance states that tax spending on this incentive has reached Rp6.58 trillion, another of the initial allocation of Rp3.46 trillion.