Toyota Indonesia Asks for New Car PPnBM Discounts Continue to 2022

Toyota Astra Motor (TAM) is pushing for the relaxation of the Sales Tax on Luxury Goods (PPnBM) for new cars to be extended next year. PPnBM relaxation is a discount for taxes that should be paid to the government per unit of new car sales. Without this tax, the retail price of new cars will become cheaper and trigger public purchases, which were sluggish during the Covid-19 pandemic.

TAM’s Marketing Director Anton Jimmi said the company had a number of reasons why the relaxation of PPnBM should be considered continuing in 2022. The relaxation that has been in place since March by the government will end on December 31.

First, he said that due to the coronavirus (Covid-19) pandemic situation in the country, it was expected to continue until next year. Until now, there is no certainty that the pandemic will end, so there is a possibility that this situation can suppress the economy which has an impact on the purchasing power of automotive goods.

Cheap car prices due to the relaxation of PPnBM encourage people to buy new cars and then make unit production performance in the country grow after the 2020 pandemic slumped. Industry players consider this policy a success which is then said to support the goal of economic recovery.

The PPnBM relaxation is known to be divided into three schemes, namely 100 percent discount for 1,500 cc cars, 50 percent for 4×2 cars with 2,500 cc engines, and 4×4 cars with 2,500 cc engines with 25 percent relaxation.

“Looking at the pandemic, which may still continue, or maybe a new variant, I think it could be a consideration for the government as well as economic support,” said Anton in Bali, Wednesday (8/12).

Malaysia

Anton said the government’s strategy of subsidizing new cars to increase economic growth amidst the pandemic was not only happening in Indonesia. Other countries are also said to be doing the same thing with their respective policies.

Anton then gave an example of a neighboring country whose government subsidized the purchase of a new car. In fact, he said Malaysia had extended the regulation until next year.

“Yes, we also convey that not only in Indonesia, other countries also provide subsidies like this. Even in Malaysia, it has been confirmed to continue until the middle of next year. And that is very supportive for the industry,” he said.

Furthermore, he left the decision entirely to the government whether to extend the regulation or not.

“Yes, communication continues through Gaikindo to the government. We always convey that the results of PPnBM support are very positive. For industry, dealers, distributors, and suppliers. Yes for consumers too,” said Anton.

Based on data released by Gaikindo, national car sales did experience an increase after the relaxation of PPnBM rolled out.

Wholesales or distribution from factories to dealers for the January-October period increased 67 percent to 703,089 units from previously only 421,066 units in the same period 2020. Retail in the same period increased 49.3 percent to 677,333 units from the previous 453,521 units.

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