"The super deductible tax scheme has been finalized and will be issued along with (provisions on) luxury sales tax on automotives."
The Indonesian government has targeted to complete new rules on luxury sales tax (PPnBM) in the first half of 2019, Industry Minister Airlangga Hartarto said.
The new rules on luxury sales tax will be issued along with a super deductible tax scheme, he stated in Tangerang, Banten Province, on Tuesday.
"The super deductible tax scheme has been finalized and will be issued along with (provisions on) luxury sales tax on automotives," he noted.
Hopefully, the two rules will be completed in the first semester of this year, he remarked, adding that the Finance Ministry is in the process of finalizing the luxury sales tax scheme.
"We are awaiting its draft. Hopefully, it will be issued in this semester," he added.
Under the new scheme, luxury sales tax is no longer based on engine capacity but vehicular exhaust emissions, he revealed.
The lower the emissions the lower the luxury sales tax tariff will be, he explained, adding that the government is in the process of consulting with the parliament about the scheme to boost automotive exports.
The super deductible tax scheme is part of the government's effort to provide fiscal incentives in the form of tax relief to industries investing in vocation activities as well as research and development activities.
According to Hartarto, the incentives for innovations are needed to improve the competitive edge of the national industry.
Source: Antara News