Sri Mulyani Says Incentives for Luxury Goods Sales Tax May Worth Rp7.99 Trillion

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati estimated the budget for luxury goods sales tax (PPnBM) incentives for cars and property would reach Rp7.99 trillion. This figure is allocated in the national economic recovery budget for the business sector.

“PPnBM borne by the government for motorized vehicles is estimated to reach Rp2.99 trillion, and for the property, the government will allocate Rp5 trillion. All of these are included in the incentives for the business sector of Rp58.46 trillion,” Sri said in a video conference on Monday, March 1.

In 2021, the government allocated the economic recovery (PEN) budget totaling Rp699.43 trillion. The figure increased by 21 percent from the temporary realization of the 2020 PEN budget that amounted to Rp579.78 trillion.

From this budget, the government increased the allocation for the health sector to Rp176.3 trillion from Rp63.51 trillion last year. Meanwhile, the social protection budget decreased from Rp220.39 trillion last year to Rp157.41 trillion in 2021.

The government also increased the support budget for the business sector. “To jump-start economic activities and maintain the sustainability of strategic sectors,” Sri Mulyani said.

The luxury tax incentives are also aimed at stimulating the people’s demands that are held back during the COVID-19 pandemic, especially those in the middle class.

Read: Sri Mulyani at G20: Indonesia Still Needs Support for Economic Recovery

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