Minister of Finance (Menkeu) Sri Mulyani Indrawati has issued a regulation on luxury goods tax discount for cars or Sales Tax on Luxury Goods (PPnBM) for cars. The regulation is contained in the Minister of Finance Regulation (PMK) Number 20 of 2021 concerning Sales Tax on Luxury Goods for the Delivery of Luxury Taxable Goods in the Form of Certain Motor Vehicles Borne by the Government for Fiscal Year 2021.
Article 2 states that the PPnBM discount for this new car is for a sedan or station wagon with a compression ignition or compression ignition engine (diesel or semi-diesel) with a cylinder capacity of up to 1,500 cc. In addition, it can also be used for motorized vehicles to transport less than 10 people including drivers other than sedans or station wagons, with ignition or compression ignition engines (diesel or semi-diesel) with a single axle drive system (4x2) with a capacity of 1s1 cylinder up to 1,500 cc.
In article 5, the PPnBM borne by the government as referred to in Article 2 will be given 100 percent for the tax period March 2021 to the tax period of May 2021. "Furthermore, 50 percent of the PPnBM payable for the Tax Period of June 2021 to the Tax Period of August 2021, and 25 percent of the PPnBM payable for the Tax Period of September 2021 to the Tax Period of December 2021," quoted the regulation, Friday (26/2 / 2021). This regulation was stipulated on February 25, 2021 by the Minister of Finance Sri Mulyani. Then it was promulgated on February 26, 2021 by President Joko Widodo (Jokowi).
The Minister of Trade (Mendag) Muhammad Lutfi explained the reason for the government to gradually relax the Sales Tax on Luxury Goods (PPnBM) throughout 2021. The main reason for this policy is to encourage increased consumption of automotive products, especially cars. "Currently the government provides incentives (PPnBM) so that people return to spending and consumption. By reducing PPnBM even in March, April, May, we provide incentives to zero (PPnBM) cars below 1500 CC and then LCC and 70 percent must be local content, "he explained in a virtual press conference, Thursday (25/2/2021). Lutfi added that the issuance of the relaxation was also important to protect workers in the automotive sector so that they would avoid termination of their contract relations (PHK). Especially at this time the number of workers in the automotive sector is high, as noted by the National Development Planning Agency (PPN / Bappenas).
"Why do we choose incentives for automotive, because this industry employs a lot of high skill labor directly. According to Bappenas, there are more than 3.2 workers compared to the indirect or indirect industry. And if, for example, we don't provide incentives then we have a lot of stockings. they will close the factories, "he explained. Therefore, he said, the implementation of PPnBM relaxation is very important to revive the country's automotive industry while saving many workers from the threat of layoffs. So it is hoped that it will have an impact on accelerating the process of national economic recovery due to the impact of the Covid-19 pandemic. "So, this is the breakthrough that we want to work on. First, provide incentives, we give persuasive encouragement to the (automotive) company," he stressed.
