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Jakarta Post

Tax cuts for new cars, houses come into effect

  • Eisya A. Eloksari and Norman Harsono

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, March 1, 2021   /  07:57 pm
The Jakarta Post Image
Illustration of the automotive business(Shutterstock/welcomia)

The government has temporarily cut the luxury tax (PPnBM) on new car purchases and the value-added tax (PPN) on new homes in a bid to boost consumer spending. Coordinating Economic Minister Airlangga Hartarto said on Monday that the tax cuts were expected to add between 0.9 and 1 percentage points to the country’s gross domestic product (GDP) growth this year by reviving the automotive, real estate and construction sectors, all of which are labor-intensive industries. “These incentives, of course, cannot be separated from the people’s confidence in the vaccine and COVID-19 containment efforts as the keys to recovery,” he said during a joint press conference with the finance, industry and public works and housing ministers. The country officially began its vaccination program on Jan. 13 with President Joko “Jokowi” Widodo...