Indonesia Extends VAT Deduction for Electric Cars to End-2024

Feb. 20, 2024, 12:03 PM UTC

Govt will continue to deduct value-added tax for electric cars with at least 40% local components to 1%, from 11%, through 2024, according to a Finance Ministry rule.

  • Ministry also issued rules on import duties and luxury sales tax waivers for EV makers announced earlier in Dec.
    • Govt to exempt import duties for EV makers that meet requirements until 2025
  • NOTE: Indonesia Steps Up Tax Incentives to Win Global EV Investment
  • Govt expects fiscal incentives to accelerate investments and EV adoption in the country, said deputy at Coordinating Ministry for Maritime and Investment Affairs Rachmat Kaimuddin

--With assistance from ...

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