Government Revises Luxury Tax Regulations for Electric Vehicles

By Editorial Team 07/07/2021
electric vehicle
Summary

The government revised the sales tax on luxury goods (PPnBM) for electric vehicles to accelerate the reduction of exhaust emissions. The revision was contained in Government Regulation (PP) No. 74/2021 on Taxable Motorized Vehicles Classified as Luxury. This regulation was signed by President Joko Widodo on July 2 and will take effect on October 16.

"To support the government's policy in reducing exhaust emissions from motorized vehicles, it is necessary to accelerate the development of battery-based electric motorized vehicles and their ecosystems," as written in PP No. 74/2021. In the regulation, the government adjusted PPnBM regulations for plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV).

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