Gaikindo requested an increase in deferred tax rates

Gaikindo requested an increase in deferred tax rates
Assessed market conditions have not conducive Combined Motor Vehicle Industry Indonesia (Gaikindo) will apply for a postponement of the increase of tax rates in the automotive sector to the government.

Following a petition filed to delay imposition of the sales tax increase on luxury goods (PPnBM) and vehicle ownership taxes are progressive.

Gaikindo chairman Bambang Trisulo said the perception of Indonesian investment before the foreign investors will be ugly and falling export performance, due to political problems and the application of the law in the country is running slow.

"Someone else [other countries] are going fast and our economy [Indonesia] has not fully recovered. Automotive market has not returned to the figure as 600,000 units last year. For that, we ask that delays implementation of the tax rate increase," he told Bisnis yesterday.

Bambang rate tax rate increase, both motor vehicle ownership is a progressive and luxury taxes will reduce consumer spending or the spirit of interest in the automotive sector investment in the coming years.

"We will seek relief for local governments to make the progressive tax deferred, not too fast into effect," he said.

Postponement of tax adjustments in the automotive sector is expected by the government until the market conditions really conducive and the market volume of four-wheeled motor vehicle returned to the position as 2008.

If the tax increase will actually be implemented, Gaikindo expect central and local governments do not wear the percentage increase in the maximum tax.

"During the 100 days of work programs of the new Cabinet was actually preoccupied with the case of Century and legal problem solving. We want the expansion of infrastructure, such as road construction was developed, electrical issues resolved," he explained.

Currently, a number of areas preparing to implement the vehicle tax increase progressively. DKI Jakarta has been suggested to impose a tax increase on the 2011 car.

Motor vehicle tax which is currently fixed 1.5% (according to government regulations) will change to 1% -2% (for the first vehicle ownership) and 2% -10% (for the next vehicle). Meanwhile, import duties under the current name assigned a maximum of 10%, up to 20%. The PPnBM rate increase from 75% (maximum) to 200%.

Price adjustment

In a separate, Marketing Director of PT Toyota Astra Motor (TAM) Trisanyoto Joko said the planned increase in motor vehicle taxes become important factors that overshadow the price adjustment next year.

In the early period when the vehicle tax is raised, said Joko, it will have an impact on car sales assuming a tax increase beyond people's purchasing power.

"If high-tax increase, sales will be corrected and the volume down. Right now we do not know the range of tax rates would be raised," he explained.

For the quarter I/2010, he was still optimistic that consumers who anticipate the tax increase could accelerate the purchase of motor vehicles.

Automotive market in 2010, said Joko, estimated to still be able to grow 15% as long as economic conditions remain conducive.