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President Joko Widodo accepts that in 2022 the incentives for PPnBM and domestic VAT will continue




KABAR RAKYAT – President Joko Widodo has endorsed maintaining the Luxury Goods Value Added Tax (PPnBM) as one of the 2022 National Economic Recovery Programs (PENs).

This was conveyed by the Coordinating Minister for Economic Affairs, Airlangga Hartanto, in his press statement after attending the limited evaluation meeting of PPKM last Sunday.

The Coordinating Minister for the Economy, Airlangga Hartanto, said the PPnBM incentives for the automotive sector. PPnBM for LCGC vehicles for a price of up to Rs 200 million, of which currently the PPnBM is at 3%.

Also Read: Year of PEN Program 2022, Government Extends Cash Welfare Program

“This PPnBM incentive only applies to the economic sector whose sale price is below Rp. 200 million, which means that 3% of the PPnBM is borne by the government,” Airlangga Hartanto said as quoted by Kabar Rakyat from, Monday, January 17, 2022.

For vehicles priced between IDR 200 million and IDR 250 million, the PPnBM tariff is 15%, in the first quarter, 50% incentive is taken by the government, so people only pay 7, 5% PPnBM, and in the second quarter they paid 15% in full.

In addition to extending the PPnBM incentives, the government has also extended the government-supported Value Added Tax (PPN DTB) for housing, which will be extended until June 2022.

Also read: The Ministry of Industry collaborates with Inaproduct to increase the number of sales of IKM

With the provision that the amount of VAT on DTP is reduced by 50% from 2021, so that it becomes VAT DTP by 50% for houses/apartments with the highest sale price of Rp. 2 billion and 25% VAT for houses/apartments with the highest sale price of Rp. 5 billion.




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