Good News From Airlangga: 100 Percent Discount On Cheap Cars Extended

Illustration. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said President Joko Widodo had approved the extension of the Luxury Goods Value Added Tax (PPnBM) incentive for automotive products.

Cars with a selling price below Rp. 200 million or LCGC (Low Cost Green Car) are subject to PPnBM of 3 percent, and the government will bear the entire PPnBM in the first quarter of 2022.

"In the second quarter, 2 percent of PPnBM is borne by the government, in the third quarter 1 percent is borne by the government, in the fourth quarter (the public) pays in full, which is 3 percent at the rate," Airlangga said in an online press conference, quoted from Antara, Monday, January 17.

Meanwhile, for automotive products costing Rp. 200 million to Rp. 250 million with a normal PPNBM rate of 15 percent, the government will bear half the PPnBM in the first quarter of 2022.

"In the first quarter 50 percent (of PPnBM) was borne by the government, so the public paid 7.5 percent. In the second quarter (the public) paid 'full' of 15 percent," Airlangga added.

He added that President Jokowi also approved the extension of the property fiscal incentive or the Government-borne Value Added Tax (PPN DTP) until June 2022.

Flats and landed houses with a value of up to Rp. 2 billion, are given an incentive of VAT DTP of 50 percent and are calculated from the beginning of the contract.

"And it is hoped that the house will be completed within 9 months," Airlangga added.

Furthermore, VAT DTP of 25 percent is also given for landed houses and flats worth Rp. 2 billion to Rp. 5 billion.

President Jokowi also approved the "front loading" of social assistance, namely the expansion of cash assistance for street vendors (PKL), stalls, and fishermen. The amount of social assistance for each recipient is IDR 600 thousand and the number of recipients is estimated at 2.76 million consisting of 1 million street vendors and shop owners as well as 1.76 million fishermen and the extreme poor.

This assistance will be implemented in the first quarter of 2022.

"It will be implemented soon and the President agrees that for social protection a 'front loading' will be carried out in the first quarter," said Airlangga.

For this reason, the government has prepared a National Economic Recovery (PEN) fund in 2022 amounting to Rp451 trillion which has been approved by President Jokowi. In addition to fiscal facilities and social protection, PEN funds will also be channeled to the health sector.