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Entrepreneurs Open Their Voices After Sri Mulyani Rejects 0% New Car Tax

Sri Mulyani Rejects 0% New Car Tax
Sri Mulyani Rejects 0% New Car Tax

Jakarta – National automotive sector entrepreneurs must accept the fact that Finance Minister Sri Mulyani Indrawati rejects the exemption of new car tax. The plan is for the proposal to take effect in September-December 2020. The

Association of Indonesian Automotive Industries (Gaikindo) ensures that it does not question Sri Mulyani’s decision to reject the proposal for tax exemption, aka 0% for new cars. Chairman I Gaikindo, Jongkie Sugiarto assessed that the rejection of the proposal would have an impact on the performance of motor vehicle sales (KBM).

“If the proposal is rejected due to government considerations, that’s okay. “Only the increase in the sales figures for the KBM will also move a bit slowly.” Said Jongkie when contacted by Media. Jakarta, Tuesday (20/10/2020).

He explained that sales of KBM or domestic cars during the pandemic had fallen by 50%. Under these conditions, Gaikindo proposes exemption from value added tax (PPN) rates, sales tax on luxury goods (PPnBM), name transfer duty (BBN), and motor vehicle tax (PKB). The purpose of this proposal is to make the selling price of cars affordable by the public.

“To make car prices fall so that they are affordable for people who are interested in buying KBM,” he explained.

According to Jongkie, the proposed 0% tax exemption only applies to certain types and those produced domestically or locally.

“Because if the sales of the KBM can increase, the central and regional government revenues can also increase, because the volume increases. And the KBM factories and their components can work normally again,” he said.

Automotive observer Mukiat Sutikno said the price of cars could fall by around 40% of the proposed new car tax. Sri Mulyani approved the 0%.

“Despite the fact that the success win can be in the center, for instance, just BBN is the equivalent, it very well may be energizing over the most recent 3 months. On the off chance that it just applies until December, since that is for car workers, part representatives providers,” he clarified.

The Used Car Dealer Agreed With Sri Mulyani Proposal

The Used Car Dealer Agreed With Sri Mulyani Proposal
The Used Car Dealer Agreed With Sri Mulyani Proposal.

The Relaxation new vehicle duty of up to 0% will bring about an exceptionally huge value decrease. Indeed, even the cost of a vehicle out and about could be half. This was expressed by the Chairman of the Association of Indonesian Automotive Industries (Gaikindo), Jongkie D Sugiarto, cited from CNBC Indonesia.

“Around 40-45% of one vehicle goes to the administration depository. Tank (esteem included duty) is 10%, PPnBM (deals charge on extravagance products) 10-125%, suppose 15%. That is 25% as of now in the administration depository ( focus). Move of engine vehicle name move (BBNKB) 12.5% then PKB (engine vehicle charge) 2.5% methods 15% goes to the neighborhood government. So the absolute is 40%, “said Jongkie.

In contrast to industry players, used car traders actually welcomed this decision. Senior Marketing Manager of WTC Mangga Dua, Herjanto Kosasih. Revealed that Sri Mulyani’s decision was not just a breath of fresh air for used car traders. However, it returned the situation to the right path.

“This is not just a breath of fresh air, it’s back to the right path. Don’t do anything wrong, 0% of all kinds, that’s really nonsense,” Herjanto said.

Herjanto said that when the discourse on the 0% tax on new cars was rolling. His party was at a loss. The reason is, many people are holding back on buying a car.

However, an immediate impact occurred after Sri Mulyani rejected the proposed 0% tax for new cars. According to him, on the same day after Sri Mulyani’s statement, many people flocked to buy used cars.

“The impact yesterday made people postpone buying, buying a car was second postponed. If it came to be sure it would be canceled buying the car. Everyone was holding back, so Sri Mulyani said no. Right away it was noon and in the evening our place was crowded.” said Herjanto.

Also read other article about the world bank has reminded indonesia of the bad impact of the omnibus law.

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