Sri Mulyani's Subordinates Bring Good News, 100 Percent Discount On PPnBM Avanza Cs Extended Until The End Of The Year

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) has decided to extend the tax discount or Sales Tax on Luxury Goods Borne by the Government (PPnBM DTP) 100 percent for motorized vehicles until the end of 2021.

Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said the discount incentive for PPnBM Motor Vehicles, which was originally given from March to August 2021, was extended to December 2021.

"The incentive extension is carried out to stimulate the consumption of the middle class in line with positive developments in handling the COVID-19 pandemic, so it is hoped that it will continue to be utilized," he said in a press statement, Friday, September 12.

Febrio explained, in the new Minister of Finance Regulation, namely PMK 120/PMK 010/2021, it is stated that the extended incentives include 100 percent PPnBM DTP for the passenger motor vehicle segment with engine capacity of up to 1,500 cc.

Then, PPnBM DTP is 50 percent for 4x2 passenger motor vehicles with engine capacities > 1,500 cc to 2,500 cc.

Also, 25 percent PPnBM DTP for 4x4 passenger motor vehicles with engine capacities > 1,500 cc to 2,500 cc.

"The excess of PPnBM and/or VAT on the purchase of motorized vehicles in September 2021 will be returned or refunded by the taxable entrepreneur who makes the collection," he said.

Previously, this tax discount incentive was issued through PMK Number 20 of 2021 which regulates the provision of incentives for the 1,500 cc segment for the sedan and 4x2 categories with a local purchase component of at least 70 percent.

Then PMK Number 31 of 2021 expands PPnBM DTP incentives by increasing the coverage of motorized vehicles, namely the 4x2 and 4x4 segments for the 1,500 cc to 2,500 cc segment and local purchases of at least 60 percent.

“The expansion is carried out to increase the impetus for policies to stimulate public consumption. Seeing the positive impact of the policies that have been given, the PPnBM incentive period is 100 percent for vehicles," he said.

For information, retail car sales in January-July 2021 have grown 38.5 percent from the same period last year. Meanwhile, cumulative car production from January to July 2021 was able to grow 49.4 percent (yoy).

"The momentum for the recovery of the national automotive sector is expected to continue in line with the more controlled pandemic conditions and the strengthening of the global economy which boosts demand for exports of national automotive products," closed Febrio.