Note, List of Motorcycles Not Subject to 12% VAT

KatadataOTO –The automotive industry is one of the sectors affected by the increase in the 12 percent VAT. This applies not only to car purchases, but also to motorcycles.

This was confirmed by the government some time ago. Therefore, people must prepare more funds when they want to buy a two-wheeled vehicle.

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

Unfortunately, the statement has not yet specified which types of motorcycles will be affected by the 12 percent VAT in early 2025.

Photo : KatadataOTO

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

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.

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

Based on the two articles above, it can be confirmed that the 12 percent VAT will only apply to big bikes (moge). For example, Harley-Davidson, BMW, and Ducati that are available in Indonesia.

This type of two-wheeled vehicle is mostly found in the garages of people from the upper-middle economic class.

Meanwhile, motorcycles like the Honda Beat, Honda PCX, Honda Scoopy, Honda Stylo, Yamaha Nmax Turbo, and Yamaha Aerox Alpha will not be subject to the 12 percent VAT.

This is because the engines of these commonly used two-wheeled vehicles are still in the 110 cc to 160 cc range. They are also assembled locally in the country.