Jakarta, CNBC Indonesia – The process of drafting a new car tax exemption continues by the government. If this is realized, the price of new cars will plummet. Several local governments are said to have responded to help maintain the industrial climate by lowering motor vehicle taxes (PKB) and transfer fees for motorized vehicles (BBNKB).
“There are those who respond to West Java, Padang, West Sumatra. We will see the developments,” said Chairman of the Indonesian Automotive Industry Association (Gaikindo), Yohannes Nangoi. CNBC Indonesia, Tuesday (15/9).
Gaikindo must communicate this new car tax incentive to two governments at once, both the central government, namely the Ministry of Finance and also the regional government to the Ministry of Home Affairs. In the process, Nangoi said it was coordinated by the Ministry of Industry.
The central government has the authority to collect value added tax (VAT) and sales tax on luxury goods (PPnBM). Then the local government has the right to collect motor vehicle tax (PKB) and transfer fee for motor vehicle names (BBNKB). All these taxes have been borne by consumers and included in the price component for new cars.
“So we discussed with the Ministry of Industry. There are two things, first we ask for tax relief on luxury goods for taxes produced in Indonesia. Second, we also want prices. on the road there is relaxation. PKB, transfer fees can be obtained support government, this is the address to the Ministry of Home Affairs. PPnBM to the Ministry of Finance is coordinated by the Ministry of Industry under the minister directly, “he said.
This tax exemption effort has been put forward by the Minister of Industry (Menperin) Agus Gumiwang. He admitted that he had filed for relaxation of a tax on the purchase of a new car of 0%. This effort is expected to stimulate the automotive market while at the same time encouraging the growth of the automotive sector in the midst of the Covid-19 pandemic.
“We have proposed to the Minister of Finance to relax the 0% new car tax until December 2020,” he said, Monday (14/9).
He has submitted this proposal since last week, namely during the National Chamber of Commerce and Industry Meeting on Thursday (10/9). The goal is to accelerate recovery.
“We understand that the automotive industry has so many derivatives. There are many Tier 1 and tier 2 derivatives, so it needs to be given attention so that people’s purchasing power can increase. The tax relaxation can be applied so that it can help the growth of the manufacturing industry in the automotive sector,” he said.