The old rules for the Sales Tax on Luxury Goods (PPnBM) have for years determined which types of cars are sold and produced in Indonesia. Starting October 16, the new PPnBM regulations based on emissions will change the automotive landscape in Indonesia. The new PPnBM rule is Government Regulation Number 73 of 2019 regarding vehicles subject to PPnBM. This regulation was promulgated on October 16, 2019 and decided to take effect two years later, namely October 16, 2021. The government has also revised this rule in Government Regulation Number 74 of 2021, which changes the PPnBM tariff specifically for plug-in hybrid vehicles, fuel cells, to pure electricity. This rule was promulgated on July 2 and will take effect on October 16.
The two regulations amend the old rules, namely Government Regulation No. 41 of 2013 regarding similar matters and also Government Regulation No. 22 of 2014 which regulates various revisions. In the old regulations, PPnBM was determined based on the type of sedan or non-sedan, engine capacity, and motion system. One of the disadvantaged due to this implementation is sedans whose PPnBM burden is 30-125%, while MPVs, SUVs, city cars have a minimum PPnBM burden of 10 percent. Meanwhile, in the new regulation, the amount of PPnBM paid to the government focuses on emissions, is more flexible in terms of engine capacity, there is no classification of sedan or non-sedan, and regulates the Low Cost Green Car (LCGC) subject to 3 percent PPnBM, flexy engines, and other cars. electrified cars such as hybrids, pure electric cars, fuel cells. In essence, starting October 16, vehicles with low emissions will have a lower PPnBM burden as well
PPnBM conventional machine
All types of cars with engines below 3,000 cc are subject to PPnBM by 15 percent if the efficiency level is 15.5 km per liter or CO2 emissions are below 150 grams per km. If this type of car turns out to be efficient only in the range of 11.5-15.5 km per liter or CO2 150-200 grams per km, then 20 percent PPnBM is imposed. If this type of car is capable of 9.3-11.5 km per liter or CO2 200-250 grams per liter, the PPnBM rate will be 25 percent. Then PPnBM 40 percent for under 9.3 km per liter or CO2 more than 250 grams per km. Especially for cars with 3,000 cc - 4,000 cc engines, PPnBM is imposed from 40 percent to 70 percent. Meanwhile, cars above 4,000 cc are sprayed with a 95 percent PPnBM rate.
PPnBM electric car
Based on PP 74/2021, the basis for imposing PPnBM is 15 percent for full hybrid cars with a maximum engine of 3,000 cc, up from 13 1/3 percent to 40 percent of the selling price. The rule applies to cars with a maximum of 3,000 cc with an efficiency of more than 23 kilometers per liter or CO2 of less than 100 grams per km. The revision also includes the basis for imposing PPnBM by 15 percent for full hybrid cars with a maximum of 3,000 cc from 33 1/3 percent to 46 2/3 percent of the selling price. The criteria apply to a maximum engine of 3,000 cc with an efficiency of 18.4-23 km per liter or CO2 ranging from 100 grams to 125 grams per km.
This rule also stipulates the tax base of 0 percent of the selling price of pure electric and fuel cell cars. Previously, there were additional requirements in the form of fuel consumption equivalent to more than 28 km per liter or CO2 emission levels of up to 100 grams per km. Furthermore, an article that regulates PPnBM for plug-in hybrid cars with an efficiency of more than 28 km per liter or CO2 of a maximum of 100 grams per km is stipulated that the basis for imposing PPnBM is 33 1/3 percent of the selling price.