Indonesia Lower House Issues Regulations Amending Luxury Goods Sales Tax On Motor Vehicles

The Indonesian lower house of parliament (Dewan Perwakilan Rakyat) Oct. 15 issued sales tax regulations on luxury goods (PPnBM) for luxury motor vehicles, including introducing a new low cost green car tax (LCGC). The regulations include: 1) a 15 to 25 percent PPnBM on passenger cars whose gasoline engine capacity is below 3,000 cc; 2) a 40 to 70 percent PPnBM for vehicles producing CO2 over 250 gm per km and vehicles with 3,000 cc-4,000 cc engines; 3) a 15 percent PPnBM for electric vehicles; 4) a 15 to 30 percent PPnBM for hybrid vehicles; and 5) a 3 percent ...