Industry Minister Calls for Extension of Tax Cut for New Cars

JAKARTA, KOMPAS.com – A proposal to extend the relaxation of a temporary 100 percent cut on luxury tax (PPnBM) for new cars has been made, said a minister.

“I have already signed a letter to Finance Minister [Sri Mulyani] to propose for an extension of PPnBM because it is affected many supporting businesses in the industry,” said Industry Minister Agus Gumiwang Kartasasmita during a meeting with House Commission VII overseeing energy and mineral resources on Wednesday, August 25.

The minister said the incentive program was able to boost car production and sales during the Covid-19 pandemic.

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According to data from the ministry, car sales in the second quarter of 2021 rose significantly to 758 percent following the incentives.

The relaxation of the tax incentives for new cars with engine capacities of 1,500 cc ended this month.

Meanwhile, from September-December this year, the incentive provided was only at 25 percent. The relaxation for value-added tax (VAT) on purchase of property sector was also able to boost sales, he said.

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“The property sector also has many supporting industries behind it,” said Agus. Data from the ministry showed that property sales rose by 15-20 percent and the incentive program was also able to boost the growth of the non-metallic mineral industries such as cement, ceramics, and building materials.

“We also push the relaxation for VAT in the property sector because it is also supported by very large supporting businesses. The goal is to increase the capability of our demand side,” said the minister.

(Editor : Erlangga Djumena)

Source: https://money.kompas.com/read/2021/08/25/190922326/menperin-minta-sri-mulyani-perpanjang-relaksasi-ppnbm-100-persen.