AISI Says 12 Percent Tax on Big Bike Sales Has No Impact

For your information, Sri Mulyani, the Minister of Finance, previously explained that the 12 percent VAT applies to luxury motor vehicles.

“Luxury goods subject to the 12 percent VAT are those subject to PPnBM (Luxury Goods Sales Tax). Such as private planes, cruise ships, yachts, houses or condominiums priced above IDR 30 billion, as well as luxury motor vehicles," said Sri Mulyani.

Referring to Sri Mulyani's statement, the application of the PPnBM (Luxury Goods Sales Tax) rate is stipulated in the Minister of Finance Regulation number 141/PMK.010/2021.

Photo : KatadataOTO

It explains the Determination of Types of Motor Vehicles Subject to Luxury Goods Sales Tax and the Procedures for Imposition, Granting, and Administration of Exemption, and Refund of Luxury Goods Sales Tax.

In article 22, it is stated that PPnBM only applies to certain two-wheeled vehicles, namely those with engine capacities from 250 cc to 500 cc.

They will then be subject to PPnBM at a rate of 60 percent. Meanwhile, those with an engine capacity of more than 500 cc will be taxed at 95 percent.

Based on the two articles above, it can be confirmed that the 12 percent VAT will only apply to big bikes. Motorcycles that have been sold at exorbitant prices will become more expensive after the tax is applied.