Indonesia to Set 0% Luxury Tax on Auto Sales From March to May

Indonesia will set luxury tax at 50% in June-Aug. and at 25% in Sept.-Nov., according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

• Tax cuts will boost purchasing power and lure investment to lagging automotive sector, Hartarto said in statement on Thursday
• Govt expects to see output increase by 81,752 units in automotive sector, which can bring 1.4t rupiah of additional state revenue
• Automotive sector and supporting industries contribute around 700t rupiah to Indonesia’s annual GDP and employ more than 1.5m people: statement
• NOTE: Govt currently sets the luxury tax at range of 15%-70%

To contact the reporters ...