Automotive - The discount scheme for electric and hybrid cars 2025

Automotive - The discount scheme for electric and hybrid cars 2025 The government, through the Ministry of Finance, has ensured that it will provide incentives for electric and hybrid cars in 2025. This policy aims to maintain the purchasing power of the public after the implementation of a 12% Value Added Tax (VAT) and to accelerate the adoption of electric vehicles in Indonesia. For electric cars, the government continues to provide incentives in the form of a 10 percent Value Added Tax (VAT) borne by the government (PPN DTP) in 2025. Thus, the VAT burden paid by consumers is 2%, after the implementation of VAT 12, which is planned to be fully effective on February 1, 2025. For 2025, only domestically produced electric cars that meet the 40% local content requirement will receive a 10% VAT incentive, and consumers will only pay a 2% VAT," said Rustam Effendi, Senior Policy Analyst at the Fiscal Policy Agency of the Ministry of Finance, to Kompas.com (1/1/2025). In addition, there is also an incentive for hybrid cars that includes a 3% Luxury Goods Sales Tax borne by the government (PPnBM DTP). The requirement is that the hybrid cars receiving this incentive must be assembled domestically, so they have a local content level that complies with government regulations. (Source : Kontan)