DPR Members From Golkar Faction Appreciate Car Tax Discounts Extended To December 2021: People's Purchasing Power Can Rise

Illustration. (Photo: Doc. Ministry of Industry)

JAKARTA - Member of the House of Representatives Commission VII, Mukhtarudin, appreciated the government's move to extend the 100 percent discount on the Sales Tax on Luxury Goods Borne by the Government (PPnBM DTP) for motorized vehicles until the end of 2021.

"We should appreciate this government's decision. The domino effect of this previous policy was quite significant for the economy of the nation and the state. And the government's decision is right to extend the policy again," said the Golkar party politician in his statement, quoted from Antara, Saturday, September 18.

According to him, the decision is very relevant in the midst of the positive trend created in the automotive industry with the policy. Mukhtarudin assessed that the hard efforts of the Ministry of Industry (Kemenperin) in pushing for an extension of the 100 percent PPnBM policy were also worthy of appreciation.

"The Ministry of Industry also deserves appreciation. Because for its initiation this policy has been extended again. Our industrial sector, especially the automotive sector, is again excited by the extension of this policy," he said.

Mukhtarudin added that with this policy, not only the industrial sector will benefit, but also the supporting industrial sectors behind it.

"Clearly a positive impact because the relaxation of this policy will not only increase demand, but also production will increase, thus it will absorb labor. This policy contributes significantly in moving the wheels of the community's economy at large. People's purchasing power and consumption can rise," he said. .

It is known that the government has officially extended the PPnBM DTP policy for motorized vehicles until the end of December 2021 in order to spur consumption of the middle class.

Extended incentives include PPnBM DTP 100 percent for the passenger motor vehicle segment with an 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 and PPnBM DTP is 25 percent for 4x4 passenger motor vehicles with engine capacities > 1,500 cc to 2,500 cc.

Meanwhile, the excess PPnBM and/or VAT on the purchase of motorized vehicles in September 2021 will be returned by the taxable entrepreneur making the collection.