Page 3 - Newsletter (Increase of Tobacco Product Excise Rate & Re-stipulation of Sales Taxes on Luxury Goods for Motor Vehicles)

DDTC Newsletter Vol.02 | No.08 I November 2019 Page 3 of 7

Increase of Tobacco Product Excise Rate & Re-stipulation of
Sales Taxes on Luxury Goods for Motor Vehicles

The regulation stipulates that through the Ministry The First Chapter regulates STLGs rates for motorized
of Finance’s Asset-Liability Management (ALM), the vehicle-transports people. The SLTG rates in this chapter
government calculates the estimated deficit in order to are classified into two groups, namely motor vehicle
anticipate deficit exceeding the 2019 APBN target. If the transport for fewer than 10 people, including the driver,
deficit exceeds the target set by government, it will be and public transport for 10 to 15 people, including the
financed by using external sources. driver. Furthermore, motor vehicle transports for people
with a load of fewer than 10 people are divided into three
The three additional sources of financing are the Excess types. These types are specified by the cylinder capacity
Budget Balance (Saldo Anggaran Lebih/SAL), cash and the level of rates will be set according to the fuel
loan withdrawals, and/or the issuance of Government consumption and emission production.
Securities (Surat Berharga Negara/SBN). Accountability
for their uses will subsequently be reported through the Based on this chapter, vehicles with a cylinder capacity of
2019 Central Government Financial Report (Laporan up to 3,000 cc are imposed with 4 levels of rates, ranging
Keuangan Pemerintah Pusat/LKPP) as a document from 15%, 20%, 25%, to 40%; vehicles with a cylinder
subject to the government’s audit. capacity of more than 3,000 cc to 4,000 cc are imposed
with 4 levels of rates, ranging from 40%, 50%, 60%, to
Re-stipulation of Sales Tax on Luxury 70%; and the electric motor group is imposed with a rate
Goods (STLGs) Provision for Motor of 15%.
Vehicles Moreover, motor vehicle transporting people with a load
ranging from 10 to 15 people, including the driver, are
also divided into three types, namely vehicles with a
The government has re-stipulated the rates of Sales Tax
on Luxury Goods (STLGs) imposed on motor vehicles. cylinder capacity of up to 3,000 cc which are imposed
with two levels of rates, 15% and 20%; vehicles with a
The re-stipulation is intended to encourage the use
of motor vehicles that are both energy-efficient and cylinder capacity of more than 3,000 cc to 4,000 cc are
also imposed with two levels of rates of 25% and 30%;
environmentally friendly. Provisions related to the
new rates are contained in the Government Regulation and the electric motor group is imposed with a rate of
Number 73 of 2019 concerning Taxable Goods Classified 15%. In this chapter, the tax base (dasar pengenaan
as Luxurious in the form of Motor Vehicles that are pajak/DPP) is the sum of selling price, replacement value,
export value, or import value as a tax basis to calculate
Subject to Sales Tax on Luxury Goods (Government Reg.
No. 73/2019) the tax payable.
Chapter Two provides STLGs rates for dual cabin vehicles
Promulgated on 16 October 2019, this regulation
will come into force in two years and will also revoke in the form of open and closed pickup vehicles. In this
chapter, STLGs rates are classified into three main groups,
Government Regulation No. 41 of 2013 (Government
Reg. No. 41/2013) regarding Taxable Goods Classified namely vehicles with a cylinder capacity of 3,000 cc of
which the rates range from 10%, 12% to 15%; vehicles
as Luxurious in the form of Motor Vehicles Subject to
Sales Tax on Luxury Goods as amended by Government with a cylinder capacity of more than 3,000 cc to 4,000 cc
of which the rates range from 20%, 25%, and 30%; and
Regulation Number 22 of 2014 (Government Reg. No.
22/2014). electric motors is imposed with a rate of 15%. Similar to
the First Chapter, the tax base in this chapter is the sum of
selling price, replacement value, export value, or import
Government Regulation No. 22/2014 formerly regulated
value as a tax basis to calculate the tax payable.
STLGs rates on luxurious motor vehicles only based
on cylinder capacity and the differential system. This
regulation only classified the rates of STLGs into seven Chapter Three details SLTGs rates for four-wheel motor
vehicles with low carbon emissions. Through this
groups, as follows: 10%, 20%, 30%, 40%, 50%, 60%, and
125%. chapter, the government classifies SLTGs rates based on
the type of carbon emission technology used. The carbon
emission technology group consists of energy-efficient
However, Government Regulation No. 73/2019 sets
and affordable technology, full hybrid and/or mild
STLGs rates on luxury motor vehicles in more complex
hybrid, flexy engine (biofuel 100), and plug-in hybrid
systems by identifying the rates in four chapters. Every
electric vehicles, battery electric vehicles, or fuel cell
chapter contains the information regarding the type
electric vehicles.
of vehicles which is further classified according to the
cylinder capacity. In addition, the level of STLGs rates in
The Indonesian government itself has also issued a
the new regulation are more diverse, i.e. set based on the
volume of fuel consumption or the level of carbon dioxide regulation relating to battery electric vehicle incentives.
The provision of this facility is outlined in the Presidential
(CO ) produced.
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