Indonesia Says VAT Hike Applies to Certain Motored Vehicles

The value-added tax hike to 12% will be imposed on certain motored vehicles that are subject to luxury sales tax, according to the finance ministry’s tax officials in a briefing in Jakarta.

• Affected vehicles include motored vehicles with capacity above 4,000cc and two-wheeled vehicles with capacity above 250cc
• Previously, Indonesia Pares Back VAT Hike to Apply Only to Luxury Goods
• NOTE: Finance ministry has issued a regulation on the VAT adjustments

To contact the reporter on this story:
Grace Sihombing in Jakarta at gsihombing@bloomberg.net

To contact the editors responsible for this story:
Claire Jiao at cjiao5@bloomberg.net

Norman Harsono

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