Govt Slashes VAT for Imported EV to Boost Sales, Lure New Investors

By Editorial Team 01/08/2023
electric vehicle concept
Summary

The government is considering scrapping the value-added tax (VAT) of fully assembled electric vehicles import. This is a fiscal incentive to attract investors to invest in Indonesia, according to Industry Minister Agus Gumiwang Kartasasmita. “We are currently mulling the regulation with the Finance Ministry, and President Joko Widodo has agreed,” Agus said on Monday.

Agus also said that the government is relaxing the Presidential Regulation No. 55/2019 on the Acceleration of the Battery-Based Electric Motorized Vehicle Program for Road Transportation. The relaxation is in the form of postponing the minimum 40 percent requirement for domestic content level (TKDN) from 2024 to 2026. This is to accommodate the readiness of the domestic industry to supply electric vehicle batteries.

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