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

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

13/6/2021 7:55:00 AM

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

JAKARTA: 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 ...

BookmarkJAKARTA: 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 (Jun 13).

8 new Covid-19 clusters, including one linked to Changi General Hospital Explainer: What are the legal powers of Covid-19 safe distancing enforcement officers? Workers' Party motion on gender equality passed in Parliament with amendment from PAP MP

The tax was fully removed in March and was supposed to be re-imposed at 50 per cent from June. The 50 per cent discount will now apply from August to December.AdvertisementAdvertisementIndustry 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 Southeast 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. headtopics.com

Total sales in 2020 were just over 532,000 units, about half the previous year.AdvertisementAdvertisementIn April, the government introduced a 12.5 per cent to 50 per cent 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 per cent 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 per cent with household consumption and investment declining.

Read more: CNA »

At least 25 dead as rains deluge central China's Henan province