Government Issues Tax Incentives for Electric Car and Bus Purchases

Jumat, 7 April 2023 - 13:30 WIB

Oleh :

Arianti Widya

VIVA Otomotif: Mobil listrik Wuling Air ev untuk acara KTT G20

Sumber :

Dok: Wuling Motors

VIVA – The government commits to accelerating economic transformation through value-added tax incentives on the purchase of four-wheeled electric vehicles and buses. This incentive will apply from the April to December 2023 tax period.

Baca Juga :

Indonesia Automotive Outlook 2025: Government Incentives Drive EV Adoption

The regulation is outlined in Minister of Finance Regulation (PMK) Number 38 of 2023 concerning Value Added Tax on Delivery of Certain Four-Wheeled Battery-Based Electric Motor Vehicles and Certain Bus Battery-Based Electric Motor Vehicles Covered by the Government for Fiscal Year 2023.

“This regulation launched to accelerate the economic transformation to increase investment attractiveness in the electric vehicle ecosystem, expand employment opportunities, accelerate the transition from the use of fossil energy to electric energy. So, in the future, it is expected to accelerate emission reduction as well as energy subsidy efficiency," Head of the Fiscal Policy Agency (BKF), Ministry of Finance, Febrio Kacaribu stated on Thursday.

VIVA Otomotif: Mobil listrik Wuling Air ev untuk acara KTT G20

Photo :

Dok: Wuling Motors

The tax incentives will be aimed at; first, four-wheeled battery-based electric motorized vehicles (KBLBB) and buses with a level of domestic components (TKDN) greater than or equal to 40 percent (TKDN ≥ 40%). These will be given a government-borne VAT (DTP) of 10 percent so that the VAT that must be paid is only one percent.

Second, KBLBB with domestic components above or equal to 20 percent and below 40 percent (20% ≤ TKDN < 40%). This will be given a VAT DTP of 5 percent so the tax that should be paid is 6 percent.

Vehicle models and types that meet the TKDN requirements are stipulated by the Decree of the Minister of Industry Number 1641 of 2023.

Meanwhile, the TKDN value criteria are to align with Presidential Regulation Number 55/2019 on the Acceleration of the Battery Electric Vehicle Program for Road Transportation and the roadmap of the Ministry of Industry's battery-based electric motor vehicle acceleration program.