Indonesia expands tax breaks for sales of bigger cars

  • 4 years   ago
Indonesia expands tax breaks for sales of bigger cars

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.

Comments