JAKARTA, Jan. 17 (Xinhua) -- Indonesian President Joko Widodo has approved the extension of the luxury sales tax (locally known as PPnBM) incentive for automotive products, Coordinating Minister for Economic Affairs Airlangga Hartarto said.
Cars with a selling price below 200 million rupiahs (about 13,958 U.S. dollars) or LCGC (Low Cost Green Car) are subject to PPnBM of 3 percent, and the government will cover the entire PPnBM in the first quarter of 2022, the senior minister told a press conference on Sunday.
"In the second quarter, 2 percent of PPnBM is borne by the government, in the third quarter 1 percent is borne by the government, in the fourth quarter (the public) pays in full, which is at the rate of 3 percent," Airlangga was quoted as saying by Antara news agency on Monday.
Meanwhile, for automotive products with the prices of 200 million rupiahs (about 13,958 U.S. dollars) to 250 million rupiahs (about 17,448 U.S. dollars) with a normal PPnBM rate of 15 percent, the government will bear half the tax in the first quarter of 2022, he noted.
He added that President Widodo also approved the extension of the property fiscal incentive or the government-borne value added tax (PPN DTP) until June 2022.
Flats and landed houses with a value of up to 2 billion rupiahs (about 139,589 U.S. dollars) are given an incentive of PPN DTP of 50 percent and are calculated from the beginning of the contract, he said.
Hartarto further said, PPN DTP of 25 percent is also given for landed houses and flats worth 2 billion rupiahs (about 139,589 U.S. dollars) to 5 billion rupiahs (about 348,973 U.S. dollars).
The president also approved the "front loading" of social assistance, namely the expansion of cash assistance for street vendors, stall owners, and fishermen, and the assistance will be given in the first quarter of 2022.
For this reason, the government has prepared a National Economic Recovery (PEN) fund in 2022 amounting to 451 trillion rupiahs (about 31,4 billion U.S. dollars), which has been approved by the president.
In addition to fiscal facilities and social protection, PEN funds will also be channeled to the health sector.