Indonesia expands tax breaks for sales of bigger cars
- 4 years ago
Indonesia has expanded its tax breaks on car sales to include more types of vehicles, the country’s finance ministry said, in a bid to accelerate economic recovery and aid its manufacturing industry.
“The government sees that stimulus for the middle class has big potential to boost consumption,” the ministry said in a statement late on Thursday.
It said the so-called upper middle class had so far held back from big purchases during the pandemic and preferred to increase their savings.
Southeast Asia’s largest economy already introduced a tax incentive scheme for sedans and two-wheel drive cars with engine power below 1,500 cc in February.
This will be expanded to include sales of four-wheel drives and cars with up to 2,500 cc that are manufactured with at least 60% domestically-sourced components, the ministry said.
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