Gaikindo Asks Government to Harmonize Luxury Goods Tax Regulation

By : Ridwan And Aldi Firhand. A | Wednesday, February 07 2018 - 21:13 IWST

Illustration of Luxury Goods
Illustration of Luxury Goods

INDUSTRY.co.id - Jakarta, The Association of Indonesian Automotive Industries (Gaikindo) Yohannes Nangoi expects the government to immediately harmonize the Sales Tax on Luxury Goods (PpnBM) regulation.

According to him, the harmonization of regulation of PpnBM can increase the growth of motor vehicle sales. Specifically, for the category of passenger vehicles.

Chairman of Gaikindo Yohannes Nangoi said the growth of sedan car sales is still low because PPnBM is relatively high, reaching 30 percent. That figure is much lower than the PpnBM multi-purpose vehicle (Multi Purpose Vehicle / MPV) which is only 10 percent.

"Last year's Sedan growth was minus 34 percent, MPV minus 2 percent." Hopefully there will be a harmonization of tariffs (taxes), so it could be better, "said Yohannes in Jakarta (6/1/2018).

He realizes that the government needs income from luxury taxes. But, Yohannes hopes there is a tax policy that harmonizes the interests of government and employers.

"Unlike now, (sales) Sedan continues to shrink, so there is no one who builds a factory (car) Sedan in Indonesia," he said.

In fact, he claims world market demand for vehicles Sedan type is still quite large. Therefore, the presence of domestic sedan factories can open opportunities for automotive exports. For example, according to Yohannes, the market in Australia absorbs 1.2 million units of motor vehicles that are all imported goods.

"We have helped by providing inputs in cooperation with the neutral and academic institutions, which we have submitted on December 12, 2017," he said.

Regarding the harmonization of luxury goods tax rules for motor vehicles that are being processed by the government. Gaikindo also proposed four main points to the government relating to carbon tex or emissions tax, low cost green car (LCGC) vehicles, low carbon emission vehicle (LCEV) vehicles and related to vehicle shape categories.

"Today there is still a division of categorization between Sedan, MPV, SUV, etc. We propose for it to be eliminated," he said.

Yohannes said Gaikindo recommends that the government implement regulations in accordance with international standards, that there are only categories of vehicles with a capacity of over 10 passengers or below.

"As to which taxes are rising and falling, that will be the government's decision," he said.

News Comment

Today's Industry

Citilink (ist)

Jumat, 23 Februari 2018 - 21:12 WIB

Citilink Assess International Flights to Banyuwangi Airport

Citilink Indonesia Airlines is reviewing the possibility of opening a direct international flight route to Banyuwangi Airport, East Java.

Ganjar Pranowo Gubernur Jawa Tengah (Foto Ist)

Jumat, 23 Februari 2018 - 21:00 WIB

Ganjar Pranowo Invites Panwas to Socialize the Election Rules of Regional Chairman

Demak - Central Java Governor Ganjar Pranowo invites the supervisory committee to participate actively in disseminating provincial and regency / municipal elections regulations.

Development of LRT (Ist)

Jumat, 23 Februari 2018 - 20:39 WIB

Almost Completed, Palembang LRT Road Has Reached 90 Percent

The progress of the overpass of Simpang Keramasan and Simpang Bandara - Tanjung Api Api has reached 90 percent. The project is expected to be a supporter of the Asian Games in August 2018.

DR. Ilham Habibie Explains About The Development Plan of Making R80 Aircraft initiated by PT Regio Aviasi Industri (RAI)

Jumat, 23 Februari 2018 - 20:30 WIB

With Foreign Investors, R80 Aircraft Manufacture Closer to Reality

The manufacture of R80 aircraft initiated by PT Regio Aviasi Industri (RAI) is getting closer to reality after a number of big companies from overseas have invested in it. This was conveyed…

Lazada Holds National Online Shopping Day Live on SCTV 11/12/2017

Jumat, 23 Februari 2018 - 20:24 WIB

All E-commerce Transaction Data Will Be Recorded by BPS

Central Bureau of Statistics (BPS) targets will soon enter the data of e-commerce transactions into household consumption data. The reason for the collection of data on online trading transactions…