Reasons for Jakarta's Retention of Electric Vehicle Tax Incentives

Jakarta (ANTARA) - Jakarta Governor Pramono Anung Wibowo has revealed the reasons why the DKI Jakarta Provincial Government is retaining tax incentives for electric vehicles and exempting them from the odd-even (gage) traffic rules.

“Regarding electric cars, the DKI Jakarta Government naturally always references the decisions of the central government,” Pramono explained at the Jakarta East City Hall Office on Tuesday.

According to Pramono, this decision was made in accordance with the Ministry of Home Affairs Circular No. 900.1.13.1/3764/SJ on the provision of fiscal incentives in the form of exemptions from Motor Vehicle Tax (PKB) and Motor Vehicle Re-Registration Fee (BBNKB) for battery-based electric motor vehicles.

Previously, the DKI Jakarta Provincial Government had proposed four tiers of incentives: electric vehicles valued up to Rp300 million receiving a 75 per cent incentive, vehicles valued Rp300-500 million receiving 65 per cent, those valued Rp500-700 million receiving 50 per cent, and vehicles above Rp700 million receiving 25 per cent.

However, this policy must comply with the Ministry of Home Affairs Circular No. 900.1.13.1/3764/SJ, which instructs local governments to provide incentives in the form of tax exemptions for electric vehicles.

“This was allowed at the time, then revised. Therefore, the DKI Jakarta Government must also adjust accordingly,” said Pramono.

Additionally, the policy represents the Jakarta Government’s commitment to reducing pollution in the capital.