Indonesia Plans to Slash VAT on Electric Cars From 11 Percent to 1 Percent
Last Updated: February 02, 2023, 11:55 IST
Image used for representation. (Photo: IANS)
Indonesia has a target of having at least 1.2 million electric motorcycles and 35,000 electric cars in use by 2024
Indonesia is considering reducing the value-added tax on electric car sales from 11% to 1% to drive up demand and attract investment, said Septian Hario Seto, a senior official with the investment coordinating ministry.
Indonesia has a target of having at least 1.2 million electric motorcycles and 35,000 electric cars in use by 2024.
“We are still doing a benchmark analysis with other countries [on electric vehicles incentives,” he told reporters after speaking at an investment forum on Wednesday.
Also Read: Electric Two-Wheeler Sales to Grow Beyond 22 Million by 2030: Report
He also said the government would give a cash incentive of 7 million rupiah ($467.60) for every electric motorcycle sold, until sales reach a certain volume that is still under discussion.
The planned incentives, however, may only be available for electric vehicles (EVs) that are at least 40% locally-made, under Indonesia’s ‘local content rule’.
“The [next step] is that the local content percentage be increased further to 60% and more,” he added.
Separately on Wednesday, senior cabinet minister Luhut Pandjaitan said the regulation laying out incentives for EVs is expected to be issued next week.
Read all the Latest Auto News here
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
Last Updated: February 02, 2023, 11:55 IST
Image used for representation. (Photo: IANS)
Indonesia has a target of having at least 1.2 million electric motorcycles and 35,000 electric cars in use by 2024
Indonesia is considering reducing the value-added tax on electric car sales from 11% to 1% to drive up demand and attract investment, said Septian Hario Seto, a senior official with the investment coordinating ministry.
Indonesia has a target of having at least 1.2 million electric motorcycles and 35,000 electric cars in use by 2024.
“We are still doing a benchmark analysis with other countries [on electric vehicles incentives,” he told reporters after speaking at an investment forum on Wednesday.
Also Read: Electric Two-Wheeler Sales to Grow Beyond 22 Million by 2030: Report
He also said the government would give a cash incentive of 7 million rupiah ($467.60) for every electric motorcycle sold, until sales reach a certain volume that is still under discussion.
The planned incentives, however, may only be available for electric vehicles (EVs) that are at least 40% locally-made, under Indonesia’s ‘local content rule’.
“The [next step] is that the local content percentage be increased further to 60% and more,” he added.
Separately on Wednesday, senior cabinet minister Luhut Pandjaitan said the regulation laying out incentives for EVs is expected to be issued next week.
Read all the Latest Auto News here
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
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