The government plans to erase luxury tax on sedans?

Sedans used to be considered luxury cars showing high prestige. However, this view is changing, so the government is planning to erase luxury tax (PPnBM)
Sedans used to be considered luxury cars showing high
prestige. However, this view is changing, so the government is planning to
erase luxury tax (PPnBM) on sedans.
Nevertheless, the Finance Ministry and the Industry
Ministry are still deliberating the advantages and the risks of the plan.
Inevitably, erasing the tax will also cut state revenue.
Currently, the government taxes luxury vehicles based
on Finance Ministerial Regulation (PMK) No. 33/2017 which states that sedans or
station wagons with compression-ignition engine or spark gap engine are subject
to 30% luxury tax.
The figure is far higher than the 10%-20% tax levied
on passenger cars such as MPVs.
The Industry Ministry suggested the plan on the
grounds that sedans no longer fit to be categorized as luxury goods. That is
why the Industry Ministry recommended erasing the luxury tax, which also goes
with the strategy of Indonesia’s automotive industry.
Finance Minister Sri Mulyani said that her side was
still deliberating the suggestion. Concerning tax, Sri stated that luxury tax
erase and the revenue cut caused were not of great concern if the domestic
industry seeks to reduce import. Moreover, the sector is not one of the
greatest revenue contributors, she said as cited by CNN Indonesia, Friday
(February 6).
Furthermore, Sri Mulyani said that the tax on sedans
will be adapted according to domestic industry’s needs, just like how the
Finance Ministry’s tariff team will consider the local content (TKDN) in
calculating tax on electric cars and passenger cars.
Currently, domestic production of sedans has only
reached 1.4 million to 1.5 million units each year. If the government really
cancels the luxury tax levied on sedans, automatically the price of sedans in
the market will decrease.
This is important because demand for sedans is thus
predicted to increase. The target is to boost annual sedan production to 2
million units.
The plan will surely bring joy to sedan enthusiasts.
However, you don’t need to wait too long until the plan is realized. There’s
another way to own a sedan with competitive price, which is to buy a used
sedan.
What you need to pay attention to is whether the
seller guarantees that the sedan is still functioning well. For instance, the
car has not been involved in an accident, because it might affect its chassis
and stability.
Also make sure that the car has not been immersed in a
flood that can damage its electrical system. The odometer must have not been
tampered with either. The papers must also be authentic so that there will be
no legal problems in the future.
mobil88, a subsidiary
of PT Serasi Autoraya (SERA) that operates in used car trade, guarantees all
the aforementioned aspects.
Hence, purchase of
used sedans in mobil88, which is also part of Astra Group, comes with quality
guarantee that gives a sense of security and convenience to the customers.
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