Rates of Sales Tax on Luxury Goods for Electric Vehicles

From Cedar Strategi Intern to Executive

The rates are stipulated in Government Regulation of the Republic of Indonesia Number 74 Year 2021 regarding Amendment to Government Regulation Number 73 Year 2019 regarding Luxury Taxable Goods in the Form of Motorized Vehicles Subject to Sales Tax on Luxury Goods (PP 74/2021) which comes into effect on 16 October 2021. Based on PP 74/2021, motorized vehicles using battery electric vehicles or fuel cell electric vehicles technology are subject to PPnBM at a rate of 15% with a Tax Basis (DPP) of 0% of the sale price. Meanwhile, motorized vehicles using plug-in hybrid electric vehicles technology with fuel consumption of more than 28 kilometers per liter or CO2 emission level of up to 100 grams per kilometer are subject to PPnBM at a rate of 15% with a DPP of 33 1/3% of the sale price. In addition, PP 74/2021 also stipulates other provisions, among others: (a) PPnBM with a rate of 15% with a DPP of 40% of the sale price shall be imposed on motorized vehicles using full hybrid technology for a cylinder content capacity of up to 3,000 cc with further provisions as stipulated in PP 74/2021, and (b) PPnBM with a rate of 15% with a DPP of 46 2/3% of the sale price shall be imposed on motorized vehicles using full hybrid technology for a cylinder content capacity of up to 3,000 cc with further provisions as stipulated in PP 74/2021. Furthermore, the Director of Commerce and Customer Management of PT Perusahaan Listrik Negara (Persero) (PLN), Bob Saril, said that PLN is ready to support the era of electric vehicles in Indonesia. In relation to such matter, PLN has prepared several incentives for electric vehicle owners, among others: (a) discounted electricity rates specifically for charging of electric vehicle power at home starting at 22.00 to 05.00, and (b) operation of 42 Public Electric Vehicle Charging Stations throughout Indonesia.