TEMPO.CO, Jakarta - The chairman of the Association of Indonesian Automotive Manufacturers (Gaikindo), Yohannes Nangoi, said he was baffled by the Finance Ministry’s proposal to impose excise duty on carbon emissions.
This proposal was mentioned by Finance Minister Sri Mulyani Indrawati in a meeting with the House of Representatives' (DPR) Commission IX legislators. This comes as a solution to replace the ongoing luxury tax (PPnBM).
The Gaikindo boss mentioned the government’s new luxury tax changes that would be applicable in 2021. “The point is that we are still puzzled by this regulation,” said Yohaness to Bisnis.com on Tuesday, February 19.
The new PPnBM tariff overseen by the government’s regulation (PP) No.73/2019 covers carbon emissions and that the amount that must be paid is no longer decided by the types of vehicles and engine capacities.
Yohannes also said the automotive industry had not been briefed about the Finance Ministry’s plan to impose excise duty on carbon emissions.
Meanwhile, Customs spokesperson Deni Surjantoro asserted that the emissions excise duty proposal was being studied by the government and explained that the PP No.73/2019 would remain in effect and not be replaced by emissions excise duties.
“The short term plan is to execute excise duty on plastics. While the plan to replace the luxury tax with excise duty in terms of emissions is still being studied,” said Deni Surjantoro.