Sri Mulyani rejected the proposed tax break for new cars



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ILLUSTRATION. Finance Minister Sri Mulyani

Reporter: Yusuf Imam Santoso | Editor: Yudho Winarto |

KONTAN.CO.ID – JAKARTA. Finance Minister (Menkeu) Sri Mulyani Indrawati said his party would not grant exemption from the tax on new cars or the added tax on luxury goods (PPnBM).

“We are not considering imposing a tax on new cars as transmitted by the Ministry of Industry (Kemenperin) and the auto industry,” Sri Mulyani said at the September Completion Period State Budget Report Conference on Monday ( 10/19).

The minister emphasized that in the current situation of the 2019 coronavirus disease pandemic (Covid-19), his party prefers to provide a fiscal stimulus that all affected companies can enjoy.

“So that we do not provide incentives on the one hand, it is burdensome for the economy,” said the minister.

Read also: In order to boost the automotive industry, this is what the Ministry of Industry is doing

Earlier, the Minister of Industry (Menperin), Agus Gumiwang Kartasasmita, asked the Finance Ministry to exempt taxes on new cars. The proposal aims to help the automotive industry, which is currently growing negatively due to the Covid-19 pandemic.

“We have proposed to the Minister of Finance to relax the 0% tax on new cars until December 2020,” Agus said some time ago.

According to Agus, if PPnBM launches later this year, it will increase people’s purchasing power to buy cars because the prices are low. Agus said this year’s car sales fell sharply.

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