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Jakarta, CNBC Indonesia – Auto industry players responded to the statement by Finance Minister Sri Mulyani Indrawati stating that the Finance Ministry (Kemenkeu) did not consider a tax exemption or 0% tax for the purchase of a new car.
The Secretary General of the Indonesian Automotive Industries Association (Gaikindo), Kukuh Kumara, casually responded to Sri Mulyani’s statement. He emphasized that Gaikindo is still awaiting an official statement on the proposal.
“Don’t be in a hurry, there is no exit policy yet,” Kukuh said. CNBC Indonesia, Monday (10/19).
He said Gaikindo was still awaiting the official response from the government to the 0% tax proposal. Although he does not know where the discussion about the 0% tax proposal has been, between the Ministry of Industry and the Ministry of Finance.
“We are not working on signals. For us the important thing is the certainty of the decision,” he said when asked if Sri Mulyani’s statement was a strong indication that the 0% tax proposal would be rejected.
Kukuh emphasized that the 0% tax proposal is purely from the Ministry of Industry as a technical ministry, not from Gaikindo directly. Although he admitted that Gaikindo was asked about contributions related to tax incentives to reactivate the market and the automotive industry during the Covid-19 pandemic.
“So there is (a suggestion) from the Ministry of Industry. They just ask us, the input is like this,” Kukuh said.
Sri Mulyani today (10/19) emphasized that he is not currently considering the 0% tax for new cars.
“We are currently not considering giving a 0% new car tax as transmitted by the industry and the Ministry of Industry,” Sri Mulyani said via video conference on Monday (10/19/2020).
The 0% tax speech was proposed by the Minister of Industry, Agus Gumiwang, at the end of August 2020. The plan is that there will be a tax break from BBNKB in the regions, for PPN and PPnBM in the Ministry of Finance. The plan will be in effect until December 2020 as an effort to save the national auto market and industry affected by the Covid-19 pandemic.
The finance ministry accepted the proposal in September, but it is still under review and no decision has been made. If this tax is made, there will be an impact on the price of new cars, which can be 30-45% cheaper.
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