EV Manufacturers Monitor Market Response to New Tax Regulations
Guangzhou, China (ANTARA) - GAC Aion electric vehicle manufacturer stated that it is monitoring market reactions to the new electric vehicle tax rules through Minister of Home Affairs Regulation No. 11 of 2026 on the Basis for Imposition of Motor Vehicle Tax, BBNKB, and Heavy Equipment Tax.
“Society’s reaction to any price increase is certain to occur. But to what extent, we’ll see what the society’s response will be,” said GAC AION CEO Andry Ciu when met in Guangzhou, China, on Tuesday.
He added that his side is also monitoring the exact tax increase figures for electric vehicles to determine the next strategy.
“We’re waiting for when the exact figures come,” he added.
His side admitted to not having heard any leaks regarding plans to increase electric vehicle taxes previously.
Furthermore, he hopes the government can reconsider providing tax subsidies to accelerate the vehicle electrification programme.
The government has changed the motor vehicle tax imposition scheme, including for electric vehicles, through Minister of Home Affairs Regulation (Permendagri) No. 11 of 2026, meaning electric vehicles are no longer exempt from motor vehicle tax (PKB) and motor vehicle ownership transfer duty (BBNKB).
It is known that under the regulation, electric vehicles are no longer objects exempt from motor vehicle tax (PKB) and motor vehicle ownership transfer duty (BBNKB). In other words, ownership or transfer remains subject to the tax imposition scheme.
This means electric cars are still subject to tax by regulation, but the amount of tax paid is not always full and can even be zero rupiah, depending on regional policies.
The tax imposition is not absolute. The central government still provides room for incentives in the form of exemptions or reductions, as regulated in Article 19.
The amount of such incentives is left to each regional government. Therefore, electric vehicle tax policies going forward will no longer be uniform and can vary between regions.