Indonesia Plans to Cut Domestic Sedan Sales Tax, Aims to Buoy Production
Jakarta Globe | August 15, 2017- Indonesia plans to lower taxes on domestic sedan sales in a bid to promote the country, the biggest car market in Southeast Asia, as a manufacturing hub for sedans, a finance ministry official told Reuters on Monday (14/08).
Sedans have so far been included in the luxury goods category and is subject to higher taxes of about 30-40 percent, versus multi-purpose vehicles (MPVs) that carry a 10-20 percent tax, making them less attractive to car makers and buyers.
The plan to cut the sales tax for sedans has been included in a revision to the country's Value Added Tax and Luxury-Goods Sales Tax Law, which the government will propose to parliament soon, said Goro Ekanto, who heads revenue policy study at the finance ministry's fiscal policy office.