Electric Cars and Motorcycles Could Face Taxes, Bali DPRD Proposes Lower Rates

Commission II of the Bali Regional People’s Representative Council (DPRD) suggests that the tax rates for electric cars and motorcycles should be lower or cheaper compared to motor vehicles. This was stated by the Chairman of Commission II of the Bali DPRD, Agung Bagus Pratiksa Linggih or Ajus Linggih, in response to Ministry of Home Affairs Regulation Number 11 of 2026.

“Perhaps the tax on electric vehicles should be lower compared to fuel-powered motor vehicles,” said Ajus to detikBali on Saturday (18/4/2026).

Nevertheless, he assesses that revenue from electric vehicles will not be very significant in increasing regional income. Because, Ajus sees that owners of electric vehicles usually replace their units rather than add new ones.

“Most people who buy electric cars are mostly replacing their cars, not adding. Even if they add, it might not be significant,” explained the Golkar politician.

However, he continued, regional revenue will not decrease from the electrification process. “Because most regional revenue comes from PKB,” added Ajus.

Previously, electric vehicles were no longer completely tax-exempt. This is in accordance with the new regulation issued by the government. The new regulation concerns the imposition of motor vehicle tax (PKB) and motor vehicle transfer fee (BBNKB).

If previously electric vehicles were excluded from motor vehicle tax imposition, in the latest regulation, electric vehicles are not mentioned in the PKB and BBNKB exemptions.

The new regulation is contained in Ministry of Home Affairs Regulation Number 11 of 2026 on the Basis for Imposing Motor Vehicle Tax, BBNKB, and Heavy Equipment Tax. One important point in the regulation is the change in the provisions for tax objects that are excluded. In the previous regulation, electric vehicles were excluded from PKB and BBNKB objects. However, in the latest regulation, electric vehicles are not mentioned as objects excluded from PKB and BBNKB.