Vehicle Sales Tax Discounts Potentially Contribute To Government Revenue Of IDR 5.17 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - The Institute for Strategic Initiatives (ISI) conducted a survey on the analysis of the impact of the luxury vehicle sales tax (PPnBM) on the economy. As a result, the PPnBM discount can potentially contribute to the government's revenue of Rp5.17 trillion.

"Potential income that is still collected from the sale of cars of IDR 5.17 trillion comes from PPN (value added tax), PKB (motor vehicle tax), and BBNKB (motor vehicle title transfer fees)," said ISI researcher, Luky Djani, in a discussion. virtual, Thursday, August 19.

Furthermore, Luky explained that the survey on PPnBM was conducted using the input and output model method which analyzes the impact of a sector and the inter-sectoral linkages in the economy.

Luky said that the survey was conducted by looking at the trend of automotive sales movements when PPnBM was in effect. Meanwhile, the government applies 100 percent PPnBM incentives for the purchase of new cars of 1,500 cc to 2,500 cc from March to August 31. The zero percent PPnBM was originally only set until May, but was extended.

After the 100 percent discount ends, the government applies a PPnBM discount to 25 percent. In addition to looking at the impact of revenue on the government, the survey also found that the PPnBM discount program has the opportunity to create an output of up to Rp39 trillion.

Luky said this output consisted of processing industry output of Rp29 trillion; agriculture, forestry, and fishery industry Rp3.69 trillion; mining and quarrying Rp1.7 trillion; and wholesale and retail trade and repair of cars and motorcycles Rp. 1.7 trillion.

Furthermore, said Luky, this policy has the potential to open up job opportunities for 183,000 people and increase household income to Rp 6.6 trillion. However, the PPnBM discount also carries a risk of lost revenue or potential loss. The potential loss due to this policy was recorded at Rp. 2.3 trillion.

From the survey results, said Luky, ISI recommends the government to extend the PPnBM program to help maintain economic growth, especially in the automotive industry sector. In addition, ISI also collects the government's commitment to reducing carbon emissions.