Indonesia plans to extend tax breaks on two-wheel drive cars


JAKARTA, June 13 (Reuters): Indonesia aims to extend a luxury tax break on the sale of sedans and two-wheel drive cars with engine power of less than 1,500 cc to August to support its pandemic-hit automotive industry, the industry ministry said on Sunday.

The tax was fully removed in March and was supposed to be re-imposed at 50% from June. The 50% discount will now apply from August to December.

Industry Minister Agus Gumiwang Kartasasmita said the extension of the lifting of the tax was aimed at revitalising demand for a industry "that has consistently contributed significantly to the national economy".

A spokesperson at the Finance Ministry said the plan was being discussed.

Car sales in South-East Asia's largest economy grew after the tax break was introduced in March after months of sluggish sales due to the pandemic but have yet to return to pre-pandemic levels.

Total sales in 2020 were just over 532,000 units, about half the previous year.

In April, the government introduced a 12.5%-50% tax discount on the sale of four-wheel drives and cars with engine capacity of up to 2,500 cc manufactured with at least 60% domestically sourced components.

That discount is in effect until the end of 2021.

Indonesia's car market is dominated by Japanese brands such as Toyota, Daihatsu , Mitsubishi and Honda.

Indonesia's gross domestic product contracted for the first time since the 1998 Asian financial crisis last year, by 2.07% with household consumption and investment declining. - Reuters
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Indonesia , Tax Break , Two-wheel , Cars , New Measures , Pandemic , Hit

   

Next In Aseanplus News

Vietnam Jan-July FDI inflows up 3.8% y/y to US$10.5bill; factories in HCM City to remain open
Myanmar Metals to sell Bawdwin project in wake of coup
Laos: Johnson & Johnson vaccinations begin in Champasack and Vientiane
Brunei makes call for nature-based solutions in tackling climate change
Coronavirus: Hong Kong confirms no new infections; medical condition of Saudi Arabian consulate worker’s daughter improving
Singapore's manufacturing output grows 27.5% on year in June
Indonesia’s most valuable startup is in talks to raise up to US$2 Billion ahead of IPO
Gold medal for ‘all Thai people’ says taekwondo queen and Olympic champion Panipak
Emerging market: Philippine stocks hit two-month low on China sell-off, virus woes
Nguyen Xuan Phuc elected as Vietnam's state president for 2021-2026; Pham Minh Chinh was re-elected as PM

Stories You'll Enjoy


Vouchers