Sri Mulyani Disbursed A Number Of Incentives For The Purchase Of Electric Vehicles

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. Antara)

JAKARTA - Finance Minister Sri Mulyani revealed a number of incentives provided by the government to people who want to own battery-based electric motorized vehicles (KBLBB). He explained that this incentive was given while still considering the principle of level of playing field for all taxpayers.

The incentives provided include, among others, the first, the provision of Tax Holiday for up to 20 years.

"This is in accordance with the investment value for the manufacturing industry of motorized vehicles, both components and the basic metal industry upstream of iron along with its integrated derivatives including nickel smelters and battery production," Sri Mulyani said at a press conference at the Kemenkomarves Building, Monday, March 20.

Second, the government also provides Super Tax Deduction of up to 300 percent of research and development costs in the field of battery power generation and electric equipment. Third, VAT exemption from mining goods including nickel ore as raw material for making batteries.

Fourth, the exemption from VAT on imports and the acquisition of model goods in the form of machinery and factory equipment for the motor vehicle industry was also released.

"Fifth, PPnBM for domestic electric cars and the Ministry of Industry's program is 0 percent compared to zero electric vehicles whose PPnBM is 15 percent," continued Sri Mulyani.

Sixth, the government also provides incentives in the form of most approved nation import duties (MFN) for imported cars incomplete knokdown or IKD 0 percent. Then importly knocked-out import duties or CKD 0 percent through several FTA and CEPA collaborations including Korea and China.

Seventh, continued Sri Mulyani, the regional tax in the form of reducing the transfer fee for motorized vehicles or motor vehicle BBN and motor vehicle or PKB tax of 90 percent.

"Accumulatively, the incentives provided from the fiscal taxation side for electric vehicles as long as the estimated use will reach 32 percent for the selling price of electric cars and 18 percent for the selling price of electric motorcycles," concluded Sri Mulyani.