Toyota Reveals Cause of Sales Decline in LCGC Segment
29 January 2026, 12:00 WIB
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.
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By Satrio Adhy
- Friday, 03 January 2025 | 07:00 WIB
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.
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.
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