List of Vehicles that Do Not Need to Pay Annual Tax, Here's the Type According to the Latest Rules

Illustration (Photo: Antara)

YOGYAKARTA - Not all vehicles are required to pay annual taxes. In general, all vehicles operating on the road are required to fulfill the Motor Vehicle Tax (PKB) obligation. If not, the vehicle is considered legally invalid. However, the government still provides exemptions for certain types of vehicles free of annual taxes.

List of Vehicles that Do Not Need to Pay Annual Tax

The latest rules governing the tax exemption of certain vehicles are contained in the Regulation of the Minister of Home Affairs Number 11 of 2026. This regulation regulates the basis for the imposition of PKB, Motor Vehicle Re-Registration Tax (BBNKB), and heavy equipment tax.

In article 3 paragraph 3 of the regulation, there are five types of vehicles that are not included in the PKB object. This means that these types of vehicles are not required to pay annual taxes. The following is the list:

Trains Motor vehicles that are solely used for defense and security purposes of the state Motor vehicles of embassies, consulates, foreign state representatives on the basis of reciprocity, and international institutions that obtain tax exemption facilities from the government Motor vehicles of renewable energy Other motor vehicles that are determined by regional regulations regarding regional taxes and levies. Changes to the Electric Vehicle Regulation in 2026

One of the important changes in the latest rules is related to electric vehicles. If previously electric vehicles were specifically referred to as tax-free vehicle types, now the policy has been adjusted. The government no longer includes electric vehicles as objects that are completely excluded from the PKB and BBNKB.

Instead, the government provides incentives in the form of limited reduction or exemption. This refers to Article 19 which stipulates that battery-based electric vehicles are given PKB and BBNKB exemption or reduction incentives, in accordance with applicable laws and regulations.

In this case, the Minister of Home Affairs Tito Karnavian instructed the regional government to continue to provide tax relief for battery-based electric vehicles. The instruction is contained in the Circular Letter of the Minister of Home Affairs Number 900.1.13.1/3764/SJ regarding the Provision of Fiscal Incentives in the Form of Motor Vehicle Tax Exemption and Motor Vehicle Re-naming Motor Vehicle Tax on Battery-Based Electric Vehicles.

"The provision of incentives for the exemption or reduction of regional taxes in the form of PKB and BBNKB KBL Based on Batteries, including on motor vehicles that are converted from fossil fuels to KBL Based on Batteries," reads the circular letter issued on Wednesday, April 22.

Thus, electric vehicle owners still have the potential to pay annual taxes. However, the amount of tax will be lighter than conventional vehicles. This is aimed at continuing to encourage the use of environmentally friendly vehicles without eliminating the potential for regional revenue.

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