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Jakarta Post

Tax cut for new cars expanded to include bigger models

  • Eisya A. Eloksari

    The Jakarta Post

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Jakarta   /   Mon, April 5, 2021   /  02:27 pm
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Illustration of cars for sale(Shutterstock/Mikbiz)

The government has expanded its temporary luxury tax (PPnBM) cut for new cars to include those with engine capacities of up to 2,500 cc starting on April 1 to boost consumer spending and accelerate the automotive sector’s recovery. Finance Ministry Regulation No. 31/2021 expands the tax incentive to two-wheel-drive (2WD) vehicles and four-wheel-drive (4WD) vehicles with engine capacities between 1,500cc and 2,500cc.  The ministry previously issued a regulation that granted a PPnBM cut for sedans and 2WD vehicles below 1,500 cc starting March 1.  Read also: Tax cuts for new cars, houses come into effect “The government hopes that this policy will be able to stimulate public consumption, especially for the domestic vehicle industry. This initiative is important in order to continue accelerating the national economic recovery rhythm,” Finance Minister...