Automakers urged to use Australian excise relief

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Automakers urged to use Australian excise relief

Automakers urged to use Australian excise relief

Industry Minister Airlangga Hartarto hopes that Indonesian automakers will benefit from cooperation between Australia and Indonesia.

The minister of Airlangga, who is currently entering the ratification stage between the parliaments of the two countries, explains the cooperation between Indonesia and Australia. While the signing of a comprehensive economic partnership agreement or the so-called global economic partnership agreement (IA-CEPA) took place Monday (4/3).

"We therefore hope this opportunity will be used," Airlangga told Karawang, West Java, Tuesday (3/26).

One of the elements of the IA-CEPA agreement, in addition to conventional cars, is known for reducing the excise duties of hybrid and electric vehicles from Indonesia.

Airlangga said it wants automakers to open production facilities in Indonesia and offer green cars to "kangaroo country".

He stressed that it was not difficult to follow the elements, as Indonesia would apply a new excise for low-emission vehicles that would become Indonesia's "entry" into the era of green vehicles. .

"So of course, it is expected that domestic automakers will immediately explore the program in this country soon after, because one of the incentives offered is the electric vehicle," said Airlangga.

Airlangga added that the DPR had discussed the harmonization of the rate of sales tax on luxury goods (PPnBM). At present, PPnBM is still waiting for the results of studies from the Ministry of Finance (Ministry of Finance) to be simulated. Airlangga said PPnBM could be completed in the first half of 2019.

Previously, the Ministry of Finance (Ministry of Finance) had explained that it would reduce PPnBm tariffs on motorized vehicles classified as low-carbon vehicles (LCEV) or environmentally friendly. To reduce the tax rate, they are working on new government regulations.

The new rule comes from the presidential regulation on electric cars, currently harmonized by the government. Finance Minister Sri Mulyani Indrawati said the tax cut was aimed at encouraging the industrialization of the auto sector.

Sri Mulyani revealed that by referring to the rules in force, the PPnBM rate calculation is based on the displacement of motor vehicles.

But during the review, the PPNBM calculation plan will be based on fuel consumption and carbon dioxide (CO2) emissions.

"Under the current rules, the higher the cc, the higher the tax rate, the lower the tax rate, now on the proposed changes to lower emission rates," said Sri Mulyani at his participation in the 11th meeting of the House Committee of Representatives in Parliament on Monday (11/2).
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