Types Of Vehicles That Are Annual Tax-Free, Check Out The List Here

Illustration of electric motors. (Doc. Can-Am)

YOGYAKARTA - The government waives motor vehicle taxes (PKB) or annual taxes for some vehicles. The vehicles are also exempt from Motor Vehicle Names (BBNKB). One of the motorized vehicles that is not taxed is electric vehicles consisting of electric motors and electric cars. In addition, there are several types of vehicles that are tax-free on an annual basis. What are the types? Check out the review below.

There are several regulations that determine this, the first of which is regulated in Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments.

In paragraph 7 it is stated that taxes are excluded for five types of vehicles, namely trains, vehicles for security, foreign national representative vehicles, renewable energy-based vehicles, and other vehicles regulated by regional regulations (perda).

Other regulations are the Regulation of the Minister of Home Affairs (Permendagri) Number 6 of 2023 concerning the Basis for the Imposition of Motor Vehicle Taxes, Motor Vehicle Transfer Fees, and Heavy Equipment Taxes in 2023.

In paragraph 10, it is explained that PKB and BBNKB are exempted for battery-based electric motorized vehicles. Check out the following explanation:

The first type of motorized vehicle that was not subject to PKB and BBNKB was the train.

The type of vehicle in question is a motorized vehicle that is solely used for the defense and security of the state. Usually this vehicle is used by the TNI and Polri.

The next types of vehicles are embassy motorized vehicles, consulates, foreign representatives with reciprocal principles, and international institutions that receive tax exemption facilities from the government.

Launching the DKI Jakarta Bapenda page, 0% PKB or this tax exemption is applied to electric vehicles, both owned by individuals and companies, both private vehicles and public transportation, both transportation of people and goods.

However, this policy is not enforced for vehicles resulting from conversion from fossil fuels to battery-based vehicles. This type of conversion vehicle is still subject to PKB such as motorized vehicles in general.

New and renewable energy-based motor vehicles (EBT) are vehicles whose energy comes from sustainable energy resources if managed properly, such as geothermal, bioenergy, sunlight, wind, flow and waterfall, as well as movement and temperature differences in the sea layer.

Another type of vehicle is another motorized vehicle that is determined by the Regional Regulation. For example, as regulated in the DKI Jakarta Regional Regulation Number 1 of 2024 concerning Regional Taxes and Regional Retribution.

Article 4, stipulates that the annual tax is exempted for motorized vehicles owned and/or controlled by manufacturers or importers whose purpose is solely to be provided for exhibition purposes and not for sale.

That's a review of the type of tax-free vehicle. Visit VOI.id to get other interesting information.