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Sri Mulyani Extends Luxury Tax on Purchase of Electric Cars

22 February 2024 13:19 WIB

TEMPO.CO, JakartaIndonesian Finance Minister Sri Mulyani Indrawati extended the luxury tax (PPnBM) on the purchase of electric cars, including imported completely built-up (CBU) and completely knocked down (CKD) electric vehicles.

This policy is set forth in the Finance Minister’s Regulation (PMK) No. 9 of 2024, which was issued on February 12, 2024, and became effective on February 15, 2024.

The aim of the luxury exemption is to shift the use of fossil energy to electric energy, attract investment interest, boost production, and support the acceleration of battery-powered motorized vehicles in the country. Import duty facilities are granted to any investor who undertakes to invest in the ecosystem.

This provision is explained in Articles 4 and 5 of the PMK 9/2024, where, fully imported electric vehicles are free from the luxury tax only for those who meet the requirements and obtain the approval issued by the minister in charge of investment affairs in the sector.

Article 2 (1) of the PMK 9/2024 clearly states that the government offers a 100 percent cut of the luxury tax (PPnBM) on the purchase of new electric cars for the tax period January to December 2024.

AMELIA RAHIMA SARI

Editor's Choice: Indonesia Election: 57 Poll Workers Died as of February 17, Health Ministry Says

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