These Are 21 Types Of Cars That Get Free Tax: Avanza, Xenia, Xpander, To Wuling Confero

Illustration of a Toyota Avanza, a type of car that gets fiscal incentives in the form of a reduction in the Sales Tax rate on Government Borne Luxury Goods (PPnBM DTP). (Photo: Doc. Antara)

JAKARTA - The government is trying to revive the performance of the automotive industry in the country so that it will continue to work because it is one of the sectors that has been significantly affected by the COVID-19 pandemic. Therefore, policies and stimuli are designed to increase the purchase and production of vehicles so that they will accelerate the national economic recovery.

An instrument that is ready to be implemented is the provision of fiscal incentives in the form of a reduction in the Sales Tax rate on Government Borne Luxury Goods (PPnBM DTP). For the types of motorized vehicles that get this facility, it is stated in the Decree of the Minister of Industry Number 169 of 2021 concerning Motor Vehicles with Sales Tax on Luxury Goods for the Delivery of Taxable Goods Classified as Luxury to be borne by the Government in Fiscal Year 2021.

"This ministerial decree is to determine motorized vehicles that can receive PPnBM facilities borne by the government based on PMK No. 20/2021", said Minister of Industry Agus Gumiwang Kartasasmita in a written statement, Monday 1 March.

The Minister of Industry emphasized that motorized vehicles that can enjoy PPnBM DTP incentives must meet locally made components.

"Must meet the requirements for local purchases (local purchase) which includes the fulfillment of the total use of components derived from a domestic production that are used in motor vehicle production activities at least 70 percent", he explained.

The Minister of Industry Decree 169/2021 also states that there are 115 types of components that can be included in the calculation of local content. In addition, a total of 21 types of cars can take advantage of the PPnBM discount according to the regulation promulgated on February 26, 2021.

The vehicle variants include six companies, namely PT Toyota Motor Manufacturing Indonesia, PT Astra Daihatsu Motor, PT Mitsubishi Motors Krama Yudha Indonesia, PT Honda Prospect Motor, PT Suzuki Motor Indonesia, and PT SGMW Motor Indonesia.

"In the Ministerial Decree, it is stated that industrial companies are required to submit a local purchase plan and a statement letter on the utilization of local purchases in production activities", said the Minister of Industry.

In addition, companies are also required to submit tax invoices in accordance with statutory provisions, PPnBM DTP realization reports, and quarterly sales performance.

"The implementation of monitoring and evaluation can be carried out in collaboration with government agencies in the field of taxation and/or involving an independent verification agency", he added.

For companies that do not carry out local purchases, the Ministry of Industry proposes the imposition of administrative sanctions in accordance with the provisions of laws and regulations and the elimination of being motorized vehicles receiving PPnBM DTP facilities.

The Minister of Industry is optimistic that this stimulus will reduce the price of domestically produced motorized vehicles so that they are more affordable in the community, increase competitiveness against imported vehicles, and can increase the production performance of four-wheeled motorized vehicles or more to above 1 million units in 2021 or the same as performance. production in 2019.

"This will certainly be able to have a significant impact on the performance of the domestic raw material and component industry, especially the small and medium industry (IKM) so that they can survive in running their business amid the pressure of the COVID-19 pandemic which will ultimately support national economic recovery in 2021", He said.

The Ministry of Industry noted that the automotive industry is one of the mainstay sectors that has a significant contribution to the national economy. Currently, there are 22 manufacturers supported by 1.500 component industries (tiers 1,2, and 3) and more than 1.5 million people working along the industry's value chain.

In fact, the automotive sector is able to contribute 10 percent to the GDP of the industrial sector, or 25 percent to the GDP of the industrial sector if it includes the motorized vehicle ecosystem.

The tax stimulus in the form of PPnBM DTP incentives is valid for nine months, starting in March 2021 which is divided into three stages, namely 100 percent reduction for the first three months, 50 percent reduction for the second three months, and 25 percent reduction for the third three months.

"The implementation will be evaluated every three months", said the Minister of Industry.

This temporary exemption from PPnBM DTP is provided for the Sedan and 4x2 segments with engine capacities below 1.500 cc and produced domestically. This segment was chosen because domestic products control more than 91 percent of the Indonesian market and have a Domestic Content Level of more than 80 percent.

And the following is a list of cars and estimates of local components that receive PPnBM incentives:

1. Toyota Yaris (74.4 percent)

2.Toyota Vios (74, percent)

3.Toyota Sienta (72.9 percent)

4.Toyota Avanza (78.9 percent)

5. Toyota Rush (74.8 percent)

6.Toyota Raize (70 percent)

7. Daihatsu Xenia (79.2 percent)

8. Daihatsu Gran Max Minibus (77.1 percent)

9. Daihatsu Luxio 70.4 percent)

10.Daihatsu Terios (75.2 percent)

11. Daihatsu Rocky (70 percent)

12. Mitsubishi Xpander (80 percent)

13. Mitsubishi Xpander Cross (80 percent)

14. Nissan Livina (80 percent)

15.Honda Brio RS (78 percent)

16.Honda Mobilio (75 percent)

17.Honda BR-V (76 percent)

18.Honda HR-V 1.5 (70 percent)

19. Suzuki New Ertiga (70.5 percent)

20. Suzuki XL-7 (71.5 percent)

21. Wuling Confero (70.5 percent)