JAKARTA – The Ministry of Finance's Director General (Dirjen) of Taxes, Suryo Utomo, revealed that until now the realization of the use of the Luxury Goods Sales Tax (PPnBM) incentives for new cars is still relatively low.

In his notes, the amount that has been absorbed is still very small when compared to the planned budget ceiling.

"The realization is still small, namely those who get this incentive are Rp. 9 billion from the ceiling of Rp. 1.6 trillion," he said online in his presentation on the 2022 State Budget today, Wednesday, April 20.

Suryo himself did not explain in more detail the causes of the lack of use of this tax facility by the public. However, Sri Mulyani's subordinates promised to continue to oversee the implementation of motorized vehicle incentives until the specified time limit.

"For PPnBM cars, we will continue to do calculations to validate the data," he said.

For information, the lack of use of PPnBM incentives does not necessarily indicate that there has been a decline in new car sales.

In fact, data released by the Association of Indonesian Automotive Industries (Gaikindo) states that in March 2022 new car sales recorded brilliant results with almost breaking 100,000 units in a month. On average, this number increased quite significantly from the previous month and compared to March 2021.

Meanwhile, another factor that might be able to answer why the realization of PPnBM facilities is still low is the criteria for cars that have fewer incentives and the tax exemption rate tends to be lower.

If previously the government's main target last year was Low Multi Purpose Vehicle (LMPV), then for 2022 the focus is directed to the low cost green car (LCGC) market segment.

One thing that is interesting is that at this time there has been a shift in interest in buying cars from the majority targeting the LMPV type, now people prefer MPVs which are more expensive. This is confirmed by the sales of the Toyota Innova, which topped the list of best-selling cars for the March 2022 period with 6,301 units.

This score even outperformed the Avanza “a million people car” which recorded sales of 5,979 units.


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