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View all search resultsDemand for big bikes to fall on luxury tax hike
The luxury tax hike from 75 percent to 125 percent on motor vehicles, which will be implemented starting April, will cause a demand drop for big motorcycles and will increase the price of spare parts, according to PT Mabua Harley-Davidson president director
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T
he luxury tax hike from 75 percent to 125 percent on motor vehicles, which will be implemented starting April, will cause a demand drop for big motorcycles and will increase the price of spare parts, according to PT Mabua Harley-Davidson president director.
'However, I still cannot predict the spare part price increase,' said Djonnie Rahmat as quoted by Tempo.co. 'We will wait and see how the luxury tax affects big bike sales.'
He added that the demand for Harley Davidson motorcycles had already decreased since the rupiah weakened significantly against the US dollar last year.
Harley Davidson only sold 50 units per month compared to the usual 90 units when the rupiah hit Rp 12,500 per dollar last year.
Industry Minister MS Hidayat said earlier this month that the additional tax on premium and super-premium vehicles with an engine capacity of above 3,000 cc would have an impact on domestic purchases, but the effect would be minor as they were targeted at buyers from the upper segment.
The luxury tax hike is another one of the government's attempts to decrease the country's already high imports, as Finance Minister Chatib Basri already raised the tax on imported consumption goods to 7.5 percent from 2.5 percent last year.
High imports resulted in Indonesia experiencing a US$430 million trade deficit in January this year, according to data from the Central Statistics Agency (BPS).
