Buy Electric Cars Get 10 Percent Incentives, The Price Becomes Like This

UNSPLASH ILLUSTRATION

JAKARTA - The government has issued Minister of Finance Regulation (PMK) Number 8 of 2024. The regulation is effective from February 15, 2024, which contains incentives for Value Added Tax (VAT) Borne by the Government (DTP) for the delivery of certain four-wheeled battery-based Electric Motor Vehicles (KBL).

This incentive also applies to certain bus battery-based Electric Motor Vehicles (KBL) for the 2024 fiscal year (TA).

Director of Counseling, Services and Public Relations of the Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) Dwi Astuti said this policy is expected to encourage the shift in the use of fossil energy to electrical energy.

"The provision of DTP VAT incentives is given in the context of economic transformation to increase the attractive investment of the electric vehicle ecosystem and the shift from fossil energy to electrical energy," said Dwi in a written statement, quoted on Saturday, February 24.

Incentives for VAT DTP are given at 10 percent of the selling price for the delivery of certain four-wheeled battery-based KBLs that meet the criteria for the Domestic Component Level (TKDN) of 40 percent. For certain bus battery-based KBLs that meet the TKDN value criteria, 40 percent are given DTP VAT incentives of 10 percent of the selling price.

Then, for certain bus battery-based KBLs that meet the TKDN value criteria of 20 percent to 40 percent, the DTP VAT incentive is given at 5 percent of the selling price.

For example, PT Primbono bought a certain bus battery-based KBL from the Jaya Kencana dealers for IDR 2,000,000,000.00 in March 2024. This type of vehicle met a 20 percent TKDN value.

"For the purchase of the bus, the VAT DTP incentive was given 5 percent multiplied by Rp. 2,000,000,000.00 or Rp. 100,000,000.00. Thus, the value of the money paid by PT Primbono to Jaya Kencana is Rp. 2,120,000,000.00. If there is no VAT incentive DTP, PT Primbono will pay Rp. 2,220,000,000.00," he said.

Dwi said that the validity period for VAT DTP in PMK is the tax period from January to December 2024.

"We hope that the public can take advantage of this opportunity to get this incentive," he said.

In addition, the government also provides incentives in the form of Sales Tax on Luxury Goods (PPnBM) Borne by the Government (DTP) for imports and/or delivery of certain four-wheeled KBLBB.

This provision is regulated in the Minister of Finance Regulation (PMK) Number 9 of 2024 which will take effect on February 15, 2024.

According to Dwi, the provision of PPnBM DTP incentives aims to increase the growth of the national automotive industry and support the acceleration program for battery-based electric motorized vehicles.

PPnBM DTP of 100 percent of the PPnBM is owed for imports of certain four-wheeled KBLBBB Completely Built-Up (CBU) and the submission of KBLBB four-wheeled Completely Knocked-Down (CKD) by certain business actors. PPnBM DTP is given for the Tax Period from January 2024 to the Tax Period in December 2024.

For example, PT Mobil Listrik imported certain four-wheeled CBBBBs with an import value of IDR 30,000,000,000.00 in February 2024. For these imports, VAT is owed 11 percent (IDR 3,300,000,000) and PPnBM is 15 percent (IDR 4,500,000,000).

"Thus, PT Mobil Listrik only paid Rp33,300,000,000.00. If the PPnBM for KBLBB imports was not given PPnBM DTP incentives, then PT Mobil Listrik would pay an import price of Rp37,800,000,000," he added.