The 2023 SEA Games is a sporting event attended by 11 members of the Southeast Asian Games Federation (SEAGF). The 2023 SEA Games started in Phnom Penh, last Friday, 5 May 2023. It was recorded that around 6,211 athletes from various countries in Southeast Asia participated in this event. Indonesia sent as many as 599 athletes divided into various sports. Currently, Indonesia is ranked fourth in the 2023 SEA Games.
The excitement surrounding the 2023 SEA Games grew stronger following the U-22 Indonesian National Team's triumph as group champions in the final standings of Group A. You can experience this thrill with your loved ones by tuning into the official TV channel or live streaming the matches. Additionally, several cafes organized watch parties to support the U-22 Indonesian National Team collectively.
To make it easier for you and your companions to reach the movie location, you require suitable transportation. One popular mode of transportation these days is the electric car, which offers several advantages over conventional vehicles. Furthermore, the government now provides incentives for electric cars, which simplify the process of paying annual taxes. You can find details regarding the electric car tax in the article below.
Based on Government Regulation of the Republic of Indonesia No. 22 of 2014, all purchases of motorized vehicles will be subject to sales tax on luxury goods (PPnBM) based on the group of taxable goods classified as luxury. Hybrid Car Tax Rates have been regulated in the Minister of Home Affairs Regulation No. 82 in 2022 article 10 and article 11. In this regulation, the maximum amount of tax that is imposed on electric cars is 10 percent.
Permendagri No. 82 of 2022 article 10 contains the following:
The imposition of the Battery-Based KBL KBL for people or goods is set at a maximum of 10% (ten percent) of the basis for the imposition of the PKB.
The imposition of Battery-Based KBL BBNKB for people or goods is set at a maximum of 10% (ten percent) of the basis for the imposition of BBNKB.
The imposition of PKB and Battery-Based KBL BBNKB for people or goods as referred to in paragraph (1) and paragraph (2) is an incentive given by the governor.
Permendagri No. 82 of 2022 article 11 contains the following:
The imposition of Battery-Based KBL PKB for public transportation is set at a maximum of 10% (ten percent) of the basis for the imposition of PKB.
The imposition of Battery-Based KBL BBNKB for public transportation is set at a maximum of 10% (ten percent) of the basis for the imposition of BBNKB.
The imposition of Battery-Based KBL PKB for public goods transportation is set at a maximum of 10% (ten percent) of the basis for the imposition of PKB.
The imposition of Battery-Based KBL BBNKB for public goods transportation is set at a maximum of 10% (ten percent) of the basis for the imposition of BBNKB.
The imposition of PKB and BBNKB for Battery-Based KBL as referred to in paragraph (1) to paragraph (4) is an incentive given by the governor.
The government provides a sizable incentive for electric car taxes in view of the current regulations. Electric car taxes can be said to tend to be cheap or quite affordable.
The amount of the electric car tax rate is always adjusted to the price of the car itself. Usually, the amount of the electric car tax rate is taken as a percentage of the vehicle price. As an illustration, you can see the tax rates for electric cars which are quite popular in Indonesia, namely Tesla and Hyundai.
In 2019, the tax for the Tesla model 3 electric car is Rp. 17,600,000 plus the mandatory road traffic accident fund contribution (SWDKLLJ) fee of Rp. 143,000. The tax rate has increased in 2020 so that the tax for the Tesla model 3 electric car is IDR 21,520,000 with SWDKLLJ costs which are still the same as the previous year.
Besides Tesla, a popular electric car is the Hyundai IONIQ EV 4x2. The tax rate for this car is cheaper compared to Tesla. In 2020, the amount of tax for Hyundai electric cars is IDR 8,100,000 and in 2021 it increased to IDR 8,260,000. The mandatory road traffic accident fund contribution fee (SWDKLLJ) in the two years remained the same, namely IDR 143,000.
There is a formula for calculating electric car tax that you can follow. You can calculate electric car tax rates more easily and have an idea of how much tax you have to pay. The following is the formula for calculating motor vehicle tax:
Motor Vehicle Tax = Selling Value of Motor Vehicles (NJKB) x 2%
For example, you have an electric car that costs Rp. 600,000,000 with a motorized vehicle selling price of Rp. 413,000,000. Normally, you have to pay an annual tax of IDR 8,260,000 (PKB = NJKB x 2%). However, electric cars receive incentives from the government so that the PKB paid for these electric cars is only 10% of the annual tax, which is IDR 862,000. The annual tax rate for an electric car that you have to pay is the PKB and the cost of the mandatory contribution to the road traffic accident fund (SWDKLLJ). The total SWDKLJJ tariff for all types of similar motorized vehicles is IDR 143,000. So, the annual tax rate that you have to pay is IDR 1,005,000.
The government is dedicated to hastening economic transformation by offering value-added tax (VAT) incentives for acquiring electric four-wheeled vehicles and buses. From April to December 2023 tax period, tax incentives for electric cars will be applicable. This regulation has been stipulated in the Minister of Finance Regulation (PMK) Number 38 of 2023 that deals with Value Added Tax on the Delivery of Particular Four-Wheeled Electric Battery-Based Vehicles and Specific Bus Battery-Based Electric Motorized Vehicles Funded by the Government for the 2023 Fiscal Year.
This incentive applies to four-wheeled battery-based electric motor vehicles (KBLBB) and buses with a domestic component level (TKDN) greater than or equal to 40 percent (TKDN ≥ 40%). This will be given VAT borne by the government (DTP) of 10% so that the VAT that must be paid is 1%.
Furthermore, KBLBB with TKDN ranging between 20% and below 40% (20% ≤ TKDN < 40%) will receive a DTP VAT of 5%, thereby making the total VAT payable to be 6%. The Decree of the Minister of Industry (Kepmenperin) Number 1641 of 2023 specifies the models and types of vehicles that adhere to the TKDN regulations. If any KBLBB fails to meet the TKDN requirements during supervision, an administrative penalty will be imposed by removing them from the list of eligible KBLBB that can avail the DTP VAT.
That is the information about the electric car taxes and how to calculate them. As a measure to expedite economic transformation, the government offers significant incentives for electric vehicles. The aim is to increase investment opportunities in the electric vehicle industry, create more job openings, and accelerate the shift from fossil fuels to electricity to reduce environmental pollution. Electric cars offer you numerous benefits, such as being eco-friendly, exempt from transfer taxes and odd-even rules, and requiring fewer spare parts, making their usage cost-effective.
If you need an electric car rental, choose a trusted car rental for better driving comfort. One of the trusted car rentals in Jakarta is MPM Rent. MPM Rent currently has 8 branch offices and 17 representative branches throughout Indonesia. MPM Rent has the facility of drivers who are proficient at driving and have long driving hours so you don't need to worry when traveling short or long distances. In addition, MPM Rent has 13,000 vehicle fleet variants for both office operational needs and personal needs. MPM Rent always ensures that the car is in the best condition for your comfort while driving. Monthly or yearly car rental made easy at MPM Rent at the best prices. Please contact the nearest car rental service in your city.