DKI Maintains Tax Incentives for Electric Vehicles

Jakarta (ANTARA) - The DKI Jakarta Provincial Government is maintaining fiscal incentives in the form of exemptions from Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Tax (BBNKB) for battery-based electric motor vehicles. This policy aligns with Circular Letter No. 900.1.13.1/3764/SJ from the Minister of Home Affairs regarding the provision of fiscal incentives in the form of PKB and BBNKB exemptions for battery-based electric motor vehicles. “The DKI Jakarta Provincial Government’s policy aligns with those provisions, namely continuing to provide incentives in the form of PKB and BBNKB exemptions for battery-based electric vehicles,” said the Head of the DKI Jakarta Regional Revenue Agency (Bapenda), Lusiana Herawati, in a statement in Jakarta on Tuesday. Lusiana stated that this policy is part of the support for the ecosystem of renewable energy-based vehicles as well as efforts to encourage the use of more environmentally friendly vehicles in Jakarta. “The direction of the DKI Jakarta Provincial Government’s policy remains consistent in supporting the development of environmentally friendly vehicles and accelerating the transition to clean energy,” she said. Previously, the DKI Jakarta Provincial Government had proposed four tiers of incentives: electric vehicles valued up to Rp300 million would receive a 75 per cent incentive, vehicles valued Rp300-500 million would receive 65 per cent, vehicles valued Rp500-700 million would receive 50 per cent, and vehicles valued above Rp700 million would receive 25 per cent. “So, the tax paid still considers the ability to pay and the principle of fairness,” said Lusiana. However, this policy must comply with the Ministry of Home Affairs Circular No. 900.1.13.1/3764/SJ, which instructs regional governments to provide incentives in the form of electric vehicle tax exemptions.