LCGC Cars Also Hit by 12 Percent VAT, Prices No Longer Cheap

Just like others, LCGC cars were not spared from the impact of the 12 percent VAT increase implemented by the government.

LCGC Cars Also Hit by 12 Percent VAT, Prices No Longer Cheap
author image

Besides four-wheeled vehicles, there are also other motor vehicles classified as luxury. This refers to articles 22 and 23.

Then the question arises, are LCGC (Low Cost Green Car) cars affected by the 12 percent VAT? Referring to the regulation above, almost all vehicle models are affected by PPnBM.

Daihatsu Ayla
Photo : TrenOto

“The group of taxable goods classified as luxury in the form of motor vehicles is subject to PPnBM at a rate of 15 percent with a tax base of 20 percent of the selling price of energy-efficient and affordable four-wheeled motor vehicles,” reads article 5.

Furthermore, it is stated in the Minister of Industry Regulation (Permenperin) number 36 of 2021 concerning low-carbon emission four-wheeled motor vehicles, enacted on December 31, 2021, that LCGC cars are subject to a three percent PPnBM.

Based on the two regulations above, LCGC cars like the Toyota Calya and Agya, Daihatsu Sigra and Ayla, to the Honda Brio Satya will be affected by the 12 percent VAT in 2025.


Latest

news
Shell to Vivo Fuel Prices Uniformly Rise in December 2025

Shell and Vivo fuel prices both rose in December 2025.

Entering December 2025, Shell and Vivo's stock is slowly recovering; however, all fuel prices have increased.

car
Car Sales

The Government Reveals It Has Not Yet Received Automotive Incentive Proposals for 2026

The government states it has not yet received an official proposal regarding automotive incentives for 2026 from the relevant ministry.

motor
Bajaj buys KTM

Bajaj Auto Acquires KTM for Rp 15.3 Trillion

Bajaj officially acquired KTM after investing Rp 15.3 trillion in mid-November 2025.

news
Pertamina Fuel Price List December 2025, Pertamax Skyrockets

Pertamina Fuel Prices December 2025, Pertamax Skyrockets

According to Pertamina's official website, the price of Pertamx fuel has increased to Rp 12,750 per liter.

motor
Virgoun's Motorcycle Collection Line-up, Many Harley-Davidsons

Virgoun's Motorcycle Collection, Many Harley-Davidsons

Virgoun, Inara Rusli's ex-husband, is known for his collection of Harley-Davidson motorcycles, which he often shows off.

news
Airlangga Hartarto's Considerations for Not Giving Incentives Next Year

Airlangga Hartarto's Considerations for Not Providing Incentives Next Year

Airlangga Hartarto believes the government has provided many incentives for the automotive sector over the past two years.

car
Toyota Kijang Innova

Toyota Kijang Innova Reborn Will Get a Facelift Next Month

The Toyota Kijang Innova Reborn features a sportier exterior and a larger head unit, set to launch in December 2025.

car
Wuling Cortez Darion PHEV

Wuling Cortez Darion PHEV Targets Consumers Hesitant About EVs

The Wuling Cortez Darion PHEV will be an option for those who are still hesitant about the performance of electric cars.