VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

President Joko Widodo has approved the extension of the luxury tax (PPnBM) for automotive products. This was announced by Coordinating Minister for Economy, Airlangga Hartarto in an online press conference recently.

Minister Airlangga explained that cars worth less than Rp 200 million or low-cost green cars (LCGC) are imposed a 3% luxury tax and the government will cover that tax in Q1 2022. Then in Q2, 2% of luxury tax will be subsidized by the government, and 1% in Q3. Then in Q4, people will pay fully the 3% luxury tax.

Meanwhile, automotive products worth Rp 200 million to Rp 250 million with 15% luxury tax, the government will subsidize half of the tax in Q1 2022. In Q2, the people must fully pay 15%. He added that President Joko Widodo also approved the extension of property fiscal incentive or value-added tax subsidy (PPN DTP) until June 2022. Apartments and houses worth more than Rp 2 billion will be given a 50% value-added tax subsidy from the beginning of the contract. Then, a 25% value-added tax subsidy is given for apartments and houses worth from Rp 2 billion to 5 billion.

Minister Airlangga further remarked that President Joko Widodo also approved social assistance, namely cash assistance for street vendors, shop owners, and fishermen. The total social assistance for each person is Rp 600 thousand. Meanwhile, the total number of recipients reaches 2.76 million people. They consist of 1 million street vendors and shop owners, as well as 1.76 million fishermen and extremely poor people. The assistance will be carried out in Q1 2022.

Therefore, the government prepares the National Economic Recovery fund in 2022 worth Rp 451 trillion, which was approved by President Joko Widodo. Besides fiscal facilities and social security, the National Economic Recovery fund will also be given for the health sector.