Worry Automotive Industry

Worry Automotive Industry

Progressive Tax Review and PPnBM

The imposition of a progressive tax and luxury sales tax should not make the automotive industry was worried. The government will set in government regulations fairly. Automotive industry asked to see the positive aspects of both these taxes.

Deputy Coordinating Minister for Economic Affairs Trade and Industry revealed Eddy Putra Irrawaddy it in Jakarta, late last week.

He asked for feedback on the automotive industry blow up the implementation plan of progressive taxation and luxury sales tax (PPnBM). It assessed the policy will hit the automotive industry.



Eddy asked for the automotive industry to see the positive aspects of both these taxes. Through a progressive tax, car sales spread to a number of areas for more.

"The owner of the vehicle will think more mature again if you want to have two cars or more in number. Instead of progressive taxable, (owner) sold the car better, "he said.

According to Eddy, it will manage the implementation of government regulations for this Act with the Ministry of Finance and the Ministry of Industry.

Eddy said, the government interest in raising PPnBM not to increase state revenues.

However, the results obtained from the tax from the owners of luxury cars were put into the state treasury, and then used to develop infrastructure, particularly roads.

Eddy was sure that the citizens of Indonesia who have two or more cars is not much. "At less than 0.5 percent of it," he added.

Not able to arrange

Meanwhile, Vice Chairman of the Chamber of Commerce and Industry Indonesia Industry Sector, Research, and Technology Rahmat Gobel said that progressive tax be increased or PPnBM impressed by the government for not able to arrange motor vehicle.

Handling congestion in Indonesia, particularly in Jakarta and surrounding areas, now has led to a reduction of vehicles on the road. It's not improvement of traffic management.

Based on data collected Motor Vehicle Industry Association of Indonesia (Gaikindo) shows, each year Japan was able to sell the car as much as 4-5 million units.

As for Germany to sell 5 million units per year, the U.S. 15 million units per year, and China's 8 million units per year.

However, the flow of vehicles in major cities in the country continue to run normally and economic activity is not disrupted.

Meanwhile, in Indonesia, the average new car sales reached 500,000 units per year, but the speed of vehicles at rush hour on average only 20-30 kilometers per hour.

Even when the rain practical in Jakarta traffic paralyzed. Many factors, for example, driver behavior is not discipline, public transport is creating a new terminal in a number of business centers, and the proliferation of street vendors who mengokupasi sidewalk.

Rahmat said, "Various factors that give the picture, adding the volume of vehicles by imposing progressive taxes should be considered more mature, more to the national automotive industry is not a great shock. Review needs to be done considering the automotive industry is one of the greatest contributions as a spur industrial growth. "

He lamented, if government policies in the taxation sector inhibits the automotive market. Automotive sector in the last 10 years has grown a tremendous market.

In mathematical calculations, the volume of automotive sales four or more wheels to increase 10-fold. In 1998, the automotive market experienced tremendous downfall. However, years of automotive sales in 2008 could reach 607,805 units. Automotive sales growth exceeded the total growth in manufacturing industries of 4.7 percent.