The newly passed law authorizing city and regional administrations to set vehicle tax rates on a progressive basis will cause car sales to drop in 2010, representatives of Daihatsu and Isuzu, both grouped under Astra International, said over the weekend.<\/p>\n
In August, lawmakers passed a new law on regional taxes and levies setting new vehicle tax regulations, stating that car owners have to pay more tax for each additional private motor vehicle owned.<\/p>\n
The maximum tax rate for a single owner is 10 percent.<\/p>\n
Yohannus Nangoi, vice president of Isuzu\u2019s sole distributor in Indonesia, PT Isuzu Astra Motor Indonesia, said the law might hamper Isuzu\u2019s high expectations for 2010 car sales.<\/p>\n
\u201cActually we have a pretty optimistic target for next year\u2019s sales. We expect to sell 18,000 cars in 2010, 3,000 more cars than this year\u2019s 15,000 car sales estimate.<\/p>\n
\u201cBut the new tax law will be \u2018dangerous\u2019 for the target,\u201d he said during a seminar in Bandung.<\/p>\n
Yohannus, however, failed to disclose how much the law could affect car sales. \u201cWe haven\u2019t calculated that yet, as the progressive tax rate will differ in each region,\u201d he said.<\/p>\n
The law covers 16 regional taxes, five provincial and 11 city administrations.<\/p>\n
Gaikindo data shows car sales hit 252,130 units in the January-July period of this year, down by 28.7 percent from the 353,500 units in the corresponding period of 2008.<\/p>\n
The car sales figure is expected to hit 460,000 units by the end of this year, a 24.32 percent drop from the 607,805 units recorded last year. Without taking into account the new progressive tax scheme, it is hoped 550,000 cars will be sold next year.<\/p>\n
The government is hoping that the progressive tax can help ease the overwhelming number of cars congesting streets of Indonesia\u2019s big cities like Jakarta. (bbs)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/new-tax-law-threatens-sales-car-sellers-say-1255914398", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }