Friday 24 May 2019 |
AFED Conference 2019
 
KFAS
Environment and development AL-BIA WAL-TANMIA Leading Arabic Environment Magazine

 
 
News Details
 
Indonesia plans tax changes to drive output, exports of greener cars 12/3/2019
Indonesia plans to revise its luxury tax scheme for cars to encourage production of environmentally friendly vehicles and to help promote Southeast Asia’s biggest economy as a regional hub for exports, ministers said on Monday.
 
During a consultation with a parliamentary committee, Finance Minister Sri Mulyani Indrawati said Indonesia aimed to overhaul its existing scheme so charges were no longer based on engine capacity, but on fuel consumption and carbon emissions.
 
The government plans to charge an 8 percent luxury tax for cars running on renewable fuel, including palm oil-based fuel, no taxes for electric vehicles (EVs) and to cut taxes for hybrid cars, Indrawati said. The maximum ceiling for taxes will be 70 percent.
 
Indonesia currently taxes vehicles in a range of between 0 percent to 125 percent depending on engine capacity, the size of the car, the type of fuel it uses and whether it is two- or four-wheel drive.
 
“We need to support the transportation industry with a technology that is more competitive,” Indrawati said.
 
“This is also in line with global concerns on climate change with CO2 emissions becoming a bigger concern for the automotive industry,” she said, adding that based on an assessment by her ministry, the change would result in higher government revenue.
 
Industry Minister Airlangga Hartarto said the tax overhaul was also intended to support higher production of sedans in Indonesia, which could be exported to Australia.
 
Jakarta and Canberra recently signed a free trade agreement eliminating Australian import tariffs for cars produced in Indonesia.
 
The country is trying to replace Thailand as a regional hub for cars. Hartarto said in 2018 Indonesia produced 1.3 million cars and exported 346,000 units, below Thailand’s 2.2 million car production and its 1.1 million exports.
 
Indonesia plans to start processing its rich supplies of nickel laterite ore for use in lithium batteries to become a global hub for producing and exporting EVs to Asia and beyond.
 
Indrawati told the parliamentary committee the new taxes would be applied from 2021 following industry consultation and to allow manufacturers to scale up technology. (Reuters)
 
 
PHOTO: FILE PHOTO: A view of a traffic roundabout in the central business district before the lights were turned off for Earth Hour in Jakarta, Indonesia, March 19, 2016.
CREDIT: REUTERS/Garry Lotulung.
 
 
 
 
 
Post your Comment
*Full Name
*Comments
CAPTCHA IMAGE
*Security Code
 
 
Ask An Expert
Boghos Ghougassian
fiogf49gjkf0d
Composting
Videos
 
Recent Publications
Financing Sustainable Development in Arab Countries
 
 
 
 
ان جميع مقالات ونصوص "البيئة والتنمية" تخضع لرخصة الحقوق الفكرية الخاصة بـ "المنشورات التقنية". يتوجب نسب المقال الى "البيئة والتنمية" . يحظر استخدام النصوص لأية غايات تجارية . يُحظر القيام بأي تعديل أو تحوير أو تغيير في النص الأصلي. لمزيد من المعلومات عن حقوق النشر يرجى الاتصال بادارة المجلة
© All rights reserved, Al-Bia Wal-Tanmia and Technical Publications. Proper reference should appear with any contents used or quoted. No parts of the contents may be reproduced in any form by any electronic or mechanical means without permission. Use for commercial purposes should be licensed.