TEMPO.CO, Jakarta - Head of the Association of Indonesian Automotive Manufacturers (Gaikindo) Jongkie D. Sugiarto responded positively towards the notion issued by Finance Minister Sri Mulyani, that sedan is no longer considered as a luxury item.
“We have agreed that sedan is no longer considered as a luxury item,” said Jongkie in Jakarta on Thursday, February 22.
According to Jongkie, the lowered tax can trigger an increase of domestic sedan production, exports, and the car's market share. He argues that the luxury tax imposed on sedan is no longer relevant nowadays.
Read: Ministry Plans to Issue Sedan Tax Rule Change in February
He said that the government has yet to decide the amount of tax they will impose to sedan car in the future.
Gaikindo has already submitted a study report from University of Indonesia’s Institute for Economic and Community Research (LPEM) related to the amount of tax for sedans. However, Jongkie is reluctant to reveal what the government plans to produce from that study. But what is important, he went on, is that it would not be the same as the current tax.
He argues that it will be best if sedan tax is equal to the tax of other types of vehicles such as the ever-popular multipurpose vehicle or MPV. He also suggested that the government should not base the tax of a vehicle based on the vehicle’s shape.
BISNIS