The Ministry Of Industry Proposes A Hybrid Type Electric Vehicle Scheme, There Is A VAT Discount

Electric motorcycle illustration (Photo: Doc. Antara)

The Ministry of Industry (Kemenperin) has proposed a value added tax (VAT) discount scheme to the Ministry of Finance (Kemenkeu) for hybrid-type electric vehicles.

Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) Taufiek Bawazier said his party had proposed that hybrid vehicles obtain a VAT scheme whose amount would be calculated by the Ministry of Finance.

"The Minister proposed that he (the hybrid vehicle) get a scheme in VAT and the amount will be calculated by the Ministry of Finance. Yes, at least we are trying to encourage it (incentives) because he (hybrid vehicles) has a contribution to reducing carbon emissions," said Taufiek at the DPR RI Building, Jakarta, on Thursday, August 31.

Taufiek said that the impetus for incentives is one of the efforts to reduce pollution levels in Jabodetabek. In addition, with these incentives, it is hoped that it can absorb labor and multiplier effects in the future.

"At least our efforts are to reduce pollution, the industry grows, can absorb labor and finally the government can get more taxes. That's roughly the case," he said.

On the same occasion, Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said, the VAT incentive scheme to be given for hybrid vehicles will be different from pure electric vehicles or electric vehicles (BEVs).

As for BEV with a domestic content level (TKDN) at least 40 percent get incentives from the government in the form of VAT relief from 11 percent to only 1 percent as stipulated in the Minister of Finance Regulation (PMK) Number 38 of 2023.

"So, we have prepared several programs, there are LCGC programs, hybrid programs, battery-based electric vehicle programs. Each of them has different programs," he said.

Minister of Industry Agus said all of these programs lead to a more environmentally friendly automotive industry.

"So, basically we, right, point to green products. If in this case, we are green mobility, the point is that it leads to that," he said.