JABAR EKSPRES — The government provides government-borne Value Added Tax (PPN DTP) incentives for the purchase of four-wheeled electric vehicles and buses to support the accelerated adoption of electric vehicles.
The decision was stipulated through Minister of Finance Regulation (PMK) Number 38 of 2023 concerning Value Added Tax on the Delivery of Certain Four-Wheel Battery-Based Electric Motorized Vehicles and Certain Bus Battery-Based Electric Motorized Vehicles Borne by the Government for the 2023 Fiscal Year (PMK PPN DTP Electric Vehicles).
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The DTP VAT incentive is valid for the 2023 fiscal year, starting from the April 2023 tax period until the December 2023 tax period.
“This program will take place in stages and in a measurable way,” said the Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan, in an official statement in Jakarta, Monday (3/4).
Luhut explained that the provision of incentives was in line with roadmap acceleration of battery-based electric motorized vehicles and refers to Presidential Regulation number 55 of 2019.
DTP VAT incentives will be given to electric cars and electric buses with certain Domestic Component Level (TKDN) criteria.
Models and types of vehicles that meet the TKDN requirements are stipulated by Decree of the Minister of Industry Number 1641 of 2023 concerning Certain Four-Wheeled Battery-Based Electric Motorized Vehicles and Certain Bus Battery-Based Electric Motorized Vehicles that Meet the Value Criteria for Domestic Component Levels which Upon Delivery may Benefit Added Tax Value Borne by the Government for Fiscal Year 2023.
