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Govt Proposes Luxury Sales Tax Relaxation to Help Automotive Industry

28 December 2020 22:21 WIB

TEMPO.CO, Jakarta - Minister of Industry Agus Gumiwang Kartasasmita on Monday suggested President Joko “Jokowi” Widodo the relaxation of luxury sales tax (PPnBM) which could accelerate car sales amidst the coronavirus pandemic. 

Agus claimed that the president agrees to the suggestion in principle but is still waiting for it to receive a 'green light' from the Finance Ministry.

"I have conveyed it to the president and in principle, he agrees with it. But the Finance Ministry is still calculating it," he said in the press conference on December 28. 

The minister encouraged the automotive industry to remain confident. He reasoned the Industry Ministry claimed the automotive segment’s 3rd quarter has shown positive growth and is pinning hopes on 2020’s final quarter. 

Minister Agus Gumiwang argued the automotive industry would need a lengthy period to reach normal sales levels as it used to prior to the coronavirus pandemic that hit Indonesia in early March. He hoped the luxury sales tax relaxation will come to fruition.

Read: Sri Mulyani: State Collects Rp616 Bln from Digital Tech Company Tax

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