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This is a list of proposed changes in the PPnBM scheme for motorized vehicles from the Indonesian Ministry of Finance
Posted by: admin 5 years, 9 months ago
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This is a list of proposed changes in the PPnBM
To encourage the production and export of the automotive industry, especially for low emission vehicles, the Ministry of Finance proposed a change in the sales tax scheme on luxury goods (PPnBM) for four-wheeled motorized vehicles.
The change in the incentive scheme proposed by the Ministry of Finance concerns the basis of imposition, engine capacity grouping, vehicle type grouping, the principle of taxation to incentive programs.
Gaikindo does not mind if the reference for imposing PPnBM is based on emission levels.
Minister of Industry: Amendment to PPnBM scheme to encourage the development of electric cars
In the previous rule, the imposition of PPnBM was based on engine capacity. Then in the new regulations, the calculation of PPnBM is based on fuel consumption and CO2 emission levels.
The grouping of engine capacity in the current rules consists of diesel, which is less than 1,500 cc, 1,500 to 2,500 cc, to more than 2,500 cc. Then, gasoline engine capacity is less than 1,500 cc, 1,500 - 2,500 - 3,000 cc, and greater than 3,000 cc.
"Later, the changes will only be divided into two groups: under 3,000 cc and above 3,000 cc," explained Finance Minister Sri Mulyani Indrawati, Monday (11/3).
In the new regulation, the Ministry of Finance proposes that the principle of imposing PPnBM sees the lower its emissions, the lower the tax rate. Unlike the current rules which actually consider the size of cc cars.
If in the current rules the type of vehicle is divided into sedans and non-sedans, then in the future there will be no differentiation between sedans and non-sedans.
The Ministry of Finance proposes that PPnBM incentives be given if the vehicle is included in a low-emission car. If in the previous regulation incentives were only given to energy-efficient and affordable prices of motorized vehicles (KBH2). In this new regulation, incentives are given to KBH2, Hybrid Electric Vehicle (HEV), HEV Plug, Flexy Engine, Electic Vehicle.
According to Sri Mulyani, the transportation equipment industry has contributed 1.76 percent to gross domestic product (GDP) growth, or around Rp 260.9 trillion.
"Looking at this small base, there is export potential from motorized vehicles. Therefore the transport industry with more competitive technology needs to be encouraged to encourage domestic industrial growth. This is also to increase exports," Sri Mulyani said.
But this change in PPnBM does not have to be done as soon as possible. He explained, for discussions with business people, the plan for this rule would be in force in 2021.
That way, the business actor will be able to make adjustments to the technology or be able to fulfill the requirements to get a lower PPnBM tariff, then the new business actor can get business certainty.
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