Indonesia reinstates temporary tax break for small-car sales
17/09/2021 05:44
JAKARTA, Sept 17 (Reuters) - Indonesia has reinstated a
temporary luxury-tax break on sales of smaller cars as the
concession helped boost demand for vehicles, the finance
ministry said on Friday.
The tax break, which had expired in August, will now be
available till the end of the year, the ministry said in a
statement.
Japanese brands such as Toyota, Daihatsu, Mitsubishi and
Honda dominate Indonesia's domestic car market, Southeast Asia's
biggest.
Indonesia's biggest listed car distributors are Astra
International ASII.JK and Indomobil Sukses Internasional
IMAS.JK .
Sedans and two-wheel drive cars with engine capacity under
1,500 cc will now be exempt from luxury tax until the year-end.
The ministry did not provide an estimate of revenue loss
from the tax break.
The government introduced the tax break in March to
incentivise car purchases, which had been hit by an economic
slowdown due to the impact of the coronavirus pandemic.
It was initially due to expire in June, but was extended
until end-August. urn:newsml:reuters.com:*:nL3N2NV011
Auto production rose 49% in January-July on a yearly basis,
not just for domestic market but also exports, the ministry
said. Monthly domestic sales have also recovered, with more than
83,000 units sold in August, close to pre-pandemic levels.
urn:newsml:reuters.com:*:nJ9N2NC01Y
(Reporting by Gayatri Suroyo; Editing by Muralikumar
Anantharaman)
((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters
Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))