Buying a New Car in 2025 Will Incur 3 Additional Taxes

KatadataOTO – For those of you planning to buy a new car in 2025, you'll need to prepare more funds. This is because the government is implementing a number of policies.

This has the potential to make the prices of new four-wheeled vehicles soar, without exception, applying to all models.

In fact, the increase is quite significant. A salesperson revealed that the Toyota Avanza could see a price hike of around Rp 16 million to Rp 19 million.

Then, the price of the Toyota Innova Zenix is likely to increase by Rp 30 million to Rp 44 million, as a result of the implementation of several new policies in early 2025.

Photo : KatadataOTO

So, what taxes will new car buyers face this year? Here, KatadataOTO summarizes them.

3 New Taxes in 2025

1. 12 Percent VAT

As is known, the government will still implement the 12 percent VAT. This applies to all types of vehicles subject to LST (Luxury Goods Sales Tax).

"Luxury goods subject to the 12 percent VAT are those subject to LST, regulated in PMK 15/2023 and PMK 42/2024. Such as private planes, cruise ships, yachts, houses or condominiums with prices above Rp 30 billion, as well as luxury motor vehicles," said Sri Mulyani.

The regulation for cars subject to LST can be found in the Minister of Finance Regulation number 141/PMK.010/2021.

For your information, the government will only fully implement the 12 percent VAT starting February 1, 2025.

2. PKB and BBNKB Surcharge

In addition to the 12 percent VAT, a number of regional governments will begin to apply a surcharge on PKB (Motor Vehicle Tax) and BBNKB (Vehicle Title Transfer Fee).

This new policy is in accordance with Law (UU) No. 1/2022 concerning HKPD (Financial Relations between the Central Government and Regional Governments).

This tax is an additional levy based on a certain percentage given to provincial and district or city governments.