Finance Minister Sri Mulyani Indrawati has issued a new regulation regarding the Luxury Sales Tax (PPnBM) incentives for four-wheeled electric motor vehicles. This regulation is outlined in Minister of Finance Regulation (PMK) Number 135 of 2024, signed on December 31, 2024. 

 

The regulation aims to accelerate the adoption of electric vehicles in Indonesia by offering a 100% PPnBM exemption for the import and sale of electric vehicles throughout 2025. The exemption applies to the tax period from January to December 2025, as stipulated in Article 3, paragraph (3). 

 

The incentive covers battery-based electric vehicles that are imported either as completely built units (CBU) or completely knocked-down (CKD) units, with 100% of the tax borne by the government (DTP). 

 

Taxable Entrepreneurs (PKP) wishing to take advantage of this incentive are required to meet the administrative requirements outlined in the regulation. 

 

Through this policy, the government hopes to accelerate the transition to electric vehicles as part of its efforts to reduce carbon emissions and achieve cleaner environmental targets. This stimulus builds on PMK 9/2024, which the government introduced last year. 

 

The incentive is also expected to stimulate the growth of the domestic electric vehicle industry and enhance Indonesia's competitiveness in the global automotive market, particularly amid the growing trend of environmentally friendly vehicles worldwide. 

 

Original article here
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