Govt may delay tax hike plan<\/p>\n
Antara, Jakarta<\/p>\n
In a proposal sent to President Susilo Bambang Yudhoyono and
\nMinister of Finance Sri Mulyani Indrawati, Minister of Industry
\nFahmi Idris has urged the planned increase in the automobile
\nluxury tax be delayed.<\/p>\n
\"We have sent a proposal to the President and the minister of
\nfinance,\" Fahmi said on Tuesday.<\/p>\n
He made the proposal amid fears the higher luxury tax outlined
\nin an Oct. 25 presidential decree would hurt the automotive
\nindustry.<\/p>\n
The decree raises the tax on sedans with an engine size of
\nbetween 1.5 liters and 3.0 liters to 50 percent of the benchmark
\nprice, from 40 percent. The tax on vans with an engine size of
\nbetween 1.5 liters and 2.5 liters will go up to 25 percent from
\n20 percent.<\/p>\n
\"The proposal on the new tax rates and the time line of the
\nimplementation will be discussed further. The discussion could
\nlast five years but it might also finish in a month,\" Fahmi said.<\/p>\n
He also said he would encourage global automotive
\nmanufacturers to increase their investment in the country and
\nmake Indonesia their regional production base.<\/p>\n
\"It is not fair if they (the manufacturers) move their
\nproduction bases to Thailand and market their products in
\nIndonesia,\" he said.<\/p>\n
The automotive industry has suffered under rising interest
\nrates, following the central bank's decision to raise its key
\nrate to 12.75 percent on Dec. 6. The Association of Indonesian
\nAutomotive Manufacturers has revised down this year's sales
\ntarget from 550,000 units to 530,000 units.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-may-delay-tax-hike-plan-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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