Indonesia’s car sales surge following tax cut

Big boost: An employee assembles a BMW AG X3 SUV at a plant in Jakarta. Indonesia’s sales of four-wheeled vehicles in April jumped 227% year-on-year as a result of the implementation of the sales tax on luxury goods incentive. ─ Bloomberg

JAKARTA: The Indonesian government has been successful in boosting car sales following a policy on the cut of a luxury tax, locally known as PPnBM, for cars with 1,500cc up to 2,500cc.

The government provides the incentive with a 100% discount in the March-May 2021 period, a 50% discount in the June-August period, and a 25% discount in the September-December period for the medium category and the 4x2 type of vehicles with segments up to 1,500cc.