Indonesia to give tax incentives for sales of some cars

The car market in Indonesia is dominated by Japanese brands, with Toyota, Daihatsu, Mitsubishi and Honda leading sales.

JAKARTA: Indonesia will temporarily remove a luxury tax on sales of some cars to bolster its automotive industry, which has been badly hit by mobility restrictions to contain the coronavirus epidemic, its economic ministry said.

From March to May, the government will remove a luxury tax for sales of sedans and two-wheel drive cars with engine power below 1,500 cc, according to a statement from the coordinating ministry of economic affairs late on Thursday. The current luxury tax rates for such sales range between 10% to 30%.