Government delays EV tax incentive by one month

EV tax incentive delayed by one month

Finance Minister Purbaya Yudhi Sadewa stated that the government has delayed the tax incentive for electric vehicles (EVs) by one month. “The EV tax incentive is still delayed by one month,” he said during a meeting at the Coordinating Ministry for Economic Affairs office in Jakarta on Tuesday. This is due to the need for further calculations. “Further calculations are still being conducted,” the minister said. Previously reported, the Indonesian government, through the Ministry of Finance, is preparing a policy to provide 100,000 electric cars and 100,000 electric motorcycles this year. For electric motorcycles, Purbaya has allocated Rp5 million per unit. For electric cars, the incentive is a Government-Borne Value-Added Tax (PPN DTP) of 40-100% on purchases. The PPN DTP incentive is exclusively for EVs, excluding hybrid vehicles. The incentive amount will be determined based on the battery type, categorised as nickel-based or non-nickel.