TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Gaikindo supports value-added tax cut for sedans

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, October 8, 2018   /   02:04 pm
Gaikindo supports value-added tax cut for sedans BMW’s newest plug-in hybrid car, the BMW i8 Roadster, is displayed for the first time at the 2018 Gaikindo Indonesia International Auto Show on Aug. 3. (JP/Riza Roidila Mufti )

The Association of Indonesian Automotive Manufacturers (Gaikindo) has expressed its support of an Industry Ministry suggestion to decrease the added value-tax for luxury goods (PPnBM), particularly sedans, to increase sales both in domestic and international markets.

“Currently, there is no one producing sedans here because the tax is expensive. [The car] is difficult to sell,” said Gaikindo deputy chairman Jongkie Sugiarto in Jakarta on Sunday as quoted by kontan.co.id.

The Industry Ministry had reportedly proposed the tax cut to the Finance Ministry.

Jongkie emphasized that the tax cut would not only boost exports but also production, which would be followed by a sales increase in the domestic market.

He expressed his concern that the government is focusing only on developing multipurpose vehicles (MVP), while the international market is dominated by sedans.

“If we compare the situation to a restaurant, Indonesia only sells friend rice, while Thailand sells friend rice, soup and so on. Thailand produces sedans, SUVs [sports utility vehicle], MPV, pick-up trucks; the country produces nearly all kinds [of vehicles],” Jongkie said.

He added that Gaikindo had carried out a study on the issue with the University of Indonesia’s (UI) Public and Economic Investigation Institute and the results had been presented to the government in January.

The study deals with four issues: emission excise, zero percent PPnBM for environmentally friendly vehicles, low carbon emission vehicles and a call for the government not to differentiate between tariffs for all kinds of vehicles. (bbn)