New Calculation Scheme for PPN on Deliveries of Certain LPG Introduced

Following the adjusted imposition of Value-Added Tax (Pajak Pertambahan Nilai – “PPN”) and Income Tax (PPh), as addressed under various regulations issued by the Minister of Finance (“Minister”), the Minister has also now adjusted the PPN tariff for the delivery of certain types of liquid petroleum gas[1] (“LPG”) through the issuance of Regulation No. 62/PMK.03/2022 (“Regulation 62/2022”), which therefore repeals and replaces the previous legal framework that imposed PPN at a rate of 10% on said types of LPG, specifically Regulation of the Minister No. 220/PMK.03/2020 (“Regulation 220/2020”).[2]