Industry Minister Insists on Proposing Tax Cut for New Cars



Petir Garda Bhwana

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  • TEMPO.CO, JakartaIndustry Minister Agus Gumiwang Kartasasmita insisted to propose the exemption of vehicle tax or zero percent tax for new cars despite refusal by Finance Minister Sri Mulyani.

    Agus said he suggested President Joko Jokowi Widodo relax the sales tax on luxury goods (PPnBM) to boost sales of new cars during the Covid-19 pandemic.

    According to him, the President agreed yet waiting for the green light from the Finance Ministry. “The Finance Ministry is still calculating it,” said Agus in a press conference on Monday, Dec. 28, 2020.

    The zero percent tax for new cars, Agus argued, will increase car sales which were starting to recover. This will not only be beneficial for car manufacturers but also all the suppliers involved.

    Minister Sri rejected the tax cut proposal submitted by the Industry Minister and was highly desired by the Association of Indonesian Automotive Manufacturers (Gaikindo).

    “We do not consider granting 0-percent tax for new cars as conveyed by the automotive industry and the Ministry of Industry,” said Sri Mulyani said at a press conference on Monday, October 19, 2020.

    Also Read: Govt Proposes Luxury Sales Tax Relaxation to Help Automotive Industry