Electric Vehicles Incentives; A New Option to Achieve Emission Targets

The increasing sales of fossil fuel and battery-powered or hybrid vehicles have prompted discussions about providing incentives for these vehicle types. This initiative is viewed as a potential solution to help meet carbon emission reduction targets.

Aziz Rahardyan & Rahmad Fauzan

26 Feb 2024 - 19.05
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Electric Vehicles Incentives; A New Option to Achieve Emission Targets

Consumers are trialling electric vehicles. /Wuling

Bisnis, JAKARTA — Three days before the commencement of the 2024 Indonesia International Motor Show (IIMS), the Ministry of Finance unveiled two Minister of Finance Regulations (PMK) regarding electric vehicles.

The regulations are outlined in PMK No. 8 of 2024 concerning Value Added Tax (VAT) for the Delivery of Certain Four-Wheeled Battery-Based Electric Motor Vehicles and Certain Battery Electric Bus Motor Vehicles Borne by the Government for the 2024 Fiscal Year.

Additionally, PMK No. 9 of 2024 concerning Sales Tax on Luxury Goods on the Import and/or Delivery of Taxable Goods Classified as Luxury in the Form of Certain Four-Wheeled Battery-based Electric Motor Vehicles Borne by the Government for the 2024 Fiscal Year.

The incentives provided include Government Borne Value Added Tax (VAT DTP) and Sales Tax on Luxury Goods (PPnBM). These incentives are applicable until December 2024 and are specifically aimed at promoting the electric vehicle segment, which currently maintains relatively low sales figures within the country.

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© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.