Government to Consider Import Tax Waiver for Electric Vehicle
- Dok: Wuling Motors
Jakarta – The Indonesian government is working to build electrification in Indonesia. One way is by providing incentives for potential investors to invest in the electric vehicle sector.
This policy aims to attract investors to build electric vehicle assembly plants and support the development of an environmentally friendly vehicle ecosystem in Indonesia.
One of the proposed incentives is a tax exemption for vehicles imported as a whole or completely Built-Up (CBU).
Menteri Perindustrian, Agus Gumiwang Kartasasmita
- Kemenperin
This step is expected to facilitate the entry of electric vehicles into the Indonesian market, and lower production costs for local producers.
"We want competitive fiscal incentives. For example, we can zero out the CBU tax, we are formulating this, obviously with the relevant ministries," Industry Minister Agus Gumiwang Kartasasmita said in an official statement on Tuesday.
In addition, the government will also evaluate the requirements for purchasing subsidized electric motorcycles that have recently been officially launched.
"Regarding the conditions that were previously set, we will abolish them. So, later those who get government assistance for the purchase of electric motorbikes will be based on NIK (Population Identification Number) or KTP. One KTP (or) one NIK can only buy one electric motorcycle," Minister Kartasasmita explained.
Another policy that is being formulated, said the Minister of Industry, is an evaluation of the value-added tax (VAT) on battery-based four-wheeled electric motor vehicles, which is currently set at one percent.
As information, the government recently announced that to accelerate the implementation of electric vehicles in the country, incentives are provided for electric motorcycles and cars.
For two-wheeled electric vehicles, the amount is IDR 7 million per unit and the product must be produced locally. Likewise with cars, which must meet special requirements and the amount of relief is in the form of a 10 percent VAT discount.
