Questioning VAT On Electric Cars Only 1 Percent, The Staff Of The Minister Of Energy And Mineral Resources Opened Their Voice

Illustration (Photo: Doc. Antara)

JAKARTA - Special Staff to the Minister of Energy and Mineral Resources for the Acceleration of Industrial Development in the ESDM sector, Agus Tjahajana Wirakusumah, opened his voice regarding the new regulation of the Ministry of Finance regarding incentives for Battery-Based Electric Motor Vehicles (KBLBB) through Minister of Finance Regulation (PMK) Number 8 of 2024 and PMK number 9 of 2024.

Just so you know, PMK No. 8 of 2024 concerning Value Added Tax on the Submission of Certain Four-wheeled Electric Motorized Vehicles and Certain Bus Battery-Based Electric Motorized Vehicles Borne by the Government for the 2024 Fiscal Year.

Meanwhile, PMK No. 9 of 2024 concerning Sales Tax on Luxury Goods on Imports and/or Submission of Taxable Goods Classified as Luxury in the Form of Certain Four-wheeled Battery-Based Electric Motor Vehicles Borne by the Government for the 2024 Fiscal Year.

Agus said that the incentives provided by the government were actually aimed at encouraging the use of electric vehicles.

"The price of EV and the price of Internal Combustion Engine (ICE) is far different, it has been agreed and all acclamation is the same and many of these new goods cannot be depreciated, the time is also short, so it is sought so that prices approach so that there are two ways with fiscal and non-fiscal," Agus explained, quoted Monday, February 26.

Agus added, if later non-fiscal regulations apply, only electric vehicles can go and other vehicles can only go at certain times.

"Then there are 2 fiscal ones that are differentiated between us in the car. If they are both produced domestically, namely VAT and PPNBM," continued Agus.

Meanwhile, cutting VAT from 11 percent to 1 percent is a fiscal policy that has been regulated by the government to continue to encourage the use of electric vehicles in the country.

"So (EV) 10 becomes 1 if ICE is still 11. If you buy Avanza, it's 11 percent, if there is an electric car like the Avanza VAT 1 percent, that's one way to push the price down. So why is the price going down so people are interested in buying," concluded Agus.