Here Are The Details Of The New Car PPnBM Incentive Scheme 2022

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Coordinating Minister for the Economy Airlangga Hartarto finally gave clarity on the extension of the Luxury Sales Tax (PPnBM) incentive for the 2022 period.

In a press statement on Sunday, January 16, it was stated that the PPnBM discount would be carried out periodically. Not only that, this time the government is more focused on fiscal incentives on the low-cost green car (LCGC) segment.

"Providing incentives for LCGC with a price of up to Rp. 200 million with the current PPnBM incentive of 3 percent," he said.

In detail, Airlangga explained that the government-borne 3 percent PPnBM incentive (DTP) applies throughout the first quarter of 2022. Then, 2 percent of DTP for the second quarter of 2022, 1 percent of DTP in the third quarter. Meanwhile, in the fourth quarter it will return to normal tariffs, namely buyers must pay PPnBM 3 percent.

Then, for the four-wheeled vehicle segment with a price of Rp. 200 million to Rp. 250 million which is included in the requirements for receiving incentives, PPnBM payments are given relief of 50 percent of the normal tariff in the first quarter of 2022. For information, cars with this segment have a normal PPnBM amount of 15 percent.

Furthermore, if it has entered the second quarter of 2022, the PPnBM levy tariff on this segment of the car has returned to its previous level, which is 15 percent.

Previously, Head of the Fiscal Policy Agency (BKF) Febrio Kacaribu had revealed that the implementation of PPnBM incentives throughout 2021 had a positive impact on the economy, especially the automotive industry and its derivatives.

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

The government's claim can be illustrated from data released by the Association of Indonesian Automotive Industries (Gaikindo) which states that total sales of new cars (from factories to dealers) recorded a 66 percent jump to 887,202 units in 2021 compared to 2020, which was 532,027 units.

Meanwhile, retail sales, from dealers to consumers, will increase by around 50 percent in 2021 to 863,348 units from the previous 578,321 units in 2020.