BPJS Health Fees Rise, New Car Taxes Abolished: Government Matters To Luxury Than Health?

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The government's new policy regarding tax incentives for the automotive industry has received various responses. This is because at the beginning of this year the government raised the Healthcare and Social Security (BPJS) Premium, but now the government has even provided a stimulus for exemption from sales tax on luxury goods (PPnBM) for the purchase of new cars.

Since January 1, 2021, the government has increased BPJS Health contributions for the categories of Participants who do not receive wages (PBPU) and non-workers (BP) or for class 3 independently. So, the rate is now in the effect of IDR 35,000 per month or an increase of IDR 9,500 from the previous IDR 25,500.

Not only that, but the government also decided to reduce contribution assistance from IDR 16,500 to IDR 7,000 per person. The regulations for the increase in BPJS Health premiums for independent participants are contained in Presidential Regulation (Perpres) Number 64 of 2020.

The Director-General of Budget at the Ministry of Finance Askolani explained that the reduction in contribution assistance from the government was carried out in order to adjust the fiscal policy of the 2021 State Budget (APBN). Another reason is to maintain the sustainability of the National Health Insurance (JKN).

Meanwhile, the government recently announced that it would lower the luxury sales tax rate or PPnBM for cars under 1,500cc. The policy will take effect as of March 2021. During the first three months, PPnBM for cars is discounted up to 100 percent. The next three months are discounted 50 percent and the next three are discounted 25 percent.

With this incentive, the government hopes that car prices will be cheaper. In the end, car sales, which have plummeted due to the pandemic, can start to grow again. A sluggish economy can recover again.

Finance Minister Sri Mulyani said there were several reasons why the luxury sales tax for cars under 1,500cc was free. One of them, the car segment is attractive to the middle class and has a local component of more than 70 percent.

Sri hopes that these incentives will be able to increase automotive production, boost the enthusiasm for middle-class spending and maintain economic growth recovery.

"Plus, we will soon enter the Ramadhan and the tradition of a homecoming for Eid Al-Fitr, which is usually a moment of increasing car sales", he said, in a written statement, Friday, February 12.

Exemption from PPnBM will not boost car sales

Indef economist, Bhima Yudhistira criticized this policy. According to him, in a pandemic condition, why would the government provide a luxury tax discount. If under normal conditions, the policy might be fine. But now it's a pandemic. Many people have reduced income.

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"Moreover, if you have a car, where do you want to go? The government is imposing PPKM (Enforcement of Restrictions on Community Activities)", said Bhima.

Meanwhile, the Research Director of the Center of Reform on Economics (CORE) Indonesia Piter Abdullah assessed that the stimulus for PPnBM exemption, although it was also encouraged by the reduction in RWA credit, would not significantly increase car purchases.

"However, it would be different if the PPnBM exempted were domestic-produced luxury vehicles targeting the upper-middle class who still have purchasing power", said Piter, Sunday, February 14.

Government policy sided with the rich people

Netizen did not want to be left behind in commenting on this new policy. According to them, it would be wise for the government to reduce the BPJS Health contribution rate instead of exempting the tax on new cars. The government should side with the poor, not spoil the rich.

One of the netizens with an account named @antosoni27 said that the government is less sensitive to the lives of the little people. In the midst of the pressure of the current COVID-19 pandemic, BPJS Health contributions are rising, the seal is rising, the state debt is rising.

"The car tax has been lowered. Indonesia is extraordinary", he said, quoted Monday, February 15.

Capture the screen on Twitter.

An account named @IquaysD came down to comment on the news that PPnBM was abolished. He considered that the state needed luxury goods more than health.

"BPJS is raised, tax luxury is lowered. Indeed, this country needs luxury more than health", he wrote.

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