Govt. Updates PPnBM Tariffs for Motor Vehicles

In an effort to further encourage the utilization of energy-efficient and environmentally friendly vehicles, the Indonesian Government has issued Regulation No. 73 of 2019 on Taxable Goods Classified as Luxurious in the Form of Motor Vehicles Subject to Luxury Goods Sales Tax (“Regulation 73/2019”), which introduces new luxury goods sales tax (pajak penjualan barang mewah – “PPnBM”) tariffs for motor vehicles, including electric vehicles. In general, the new PPnBM tariffs set out under Regulation 73/2019 were determined with due consideration being paid to fuel consumption and CO₂ emissions for the following types of vehicles:[1]