VARIANTS AND TYPES OF MOTOR VEHICLES SUBJECTED TO SALES TAX ON LUXURY GOODS
(Decree of the Minister of Finance No. 348/KMK.04/1999 dated June 24,1999) THE MINISTER OF FINANCE,
Considering :
a. that with the enforcement of Government ;.Regulation No. 59/1999 concerning -he amendment ,a Government Regulation No. 50/1994 on the implementation of Law No. 3I/1983 on Value Added Tax on goods and services and Sales Tax on luxury goods as alreadi amended by Law No. 11/1994, which has already been amended the latest by Gojernment Regulation No. 14/1998, in the framwork of boosting the automotive industry and in order to enhance the utilization of potential of he automotive industri, it is necessary to adjust the provisions on the imposition of Sales Tax on axable goods categorized as luxury goods in theform of motor vehicles;
b. that in relation thereto, it is deemed necessary to restipulate the provisions on variants and types of motor vehicles subjected to Sales Tax on luxury goods by issuing a decee of he ivlinister of Finance.
In view of
1. Law No. 8/1993 on Value Added Tax on goods and services and Sales Tax on luxury goods (Statute Book of 1983 No. 51, Supplement to Statute Book No. 3264) as already amended by Law No. 11/1994 (Statute Book of 1994 No. 61, Supplement to Statute Book No. 3563);
2. Government Regulation No. 50/1994 on the implementation of Law No. 8/1983 concerning Value Added Tax on goods and services and Sales tax on luxury goods as already amended by Law No. 11/1994, as already amended the latest by Government Regulation No. 59/1999;
3. Presidential Decree No. 1 22/M/1998;
D E C I D E S TO stipulate ;
THE DECREE OF THE MINISTER OF FINANCE ON VARIANTS AND TYPES OF MOTOR VEHICLES SUBJECTED TO SALE TAX ON LUXURY GOODS
Article 1
The import and the delivery of two-wheel motor vehicles with Propeller engines of a cylinder capacity not exceding 250 CC inside customs areas shall be subjected to Sales Tax on luxury goods, with the tariif of 50% (fifty percent).
Article 2
(1) The import and the delivery of motor vehicles for the transport of more than 10 (ten) persons including the driver, with spark-ignition internal combustion reciprocating piston engines or compression ignition internal combustion piston engines (diesel/semi diesel) of ail cylinder capacities and motor vehicles for the transport of less than 10 (ten) persons including the driver as well as vans of the single propeller axle system (4 x 2) ,with spark-ignition internal combustion reciprocating piston engines or compression ignition internal combustion 2iston engines (diesel/semi diesel) of a cylinder capacity not exceeding 1,500 CC, inside customs areas shall be subjected to Sales Tax on Luxury Goods (PPNBM) with the tariff of 10% (ten percent)
(2) The import and the delivery of motor vehicles for he transport of less than 10 (ten) persons including the driver as well as vans of the single propeller axle system (4 x 2) with spark-ignition internal combustion reciprocating piston engines of a cylinder capacity exceeding 1,500 CC but not exceeding 3,000 CC or compression ignition internal combustion piston engines (diesel/semi diesel) of a cylinder capacity exceeding 1,500 CC but not exceeding 2,500 CC, inside customs areas shall be subjected to PPNBM witch the tariff of 15% (fifteen percent).
(3) The import and the delivery of sedans/station wagons tor the transport of less than 10 (ten) persons including the driver of a cylinder capacity not exceeding 1,500 CC, motor vehicles for the transport of less than 10 (ten) persons as well as vans of the single propeller axle system (4 x 2) with spark-ignition internal combustion reciprocating piston engines of a cylinder capacity exceeding 3,000 CC or compression ignition internal combustion piston engines (diesel/semi diesel) of a cylinder capacity exceeding 2,500 CC as well as motor vehicles for the transport of less than 10 (ten) persons including the driver as well as vans of the double propeller axle system (4 x 4) with spark-ignition internai combustion reciprocating piston engines or compression ignition internal combustion piston engines (diesel/semi diesel) of a cylinder capacity not exceeding 1,500 CC, inside customs areas, shall be subjected to PPNBM with the tariff of 30% (thirty percent).
3,000 CC or compression ingnition internal combustion piston engines (diesel/semi diesel) of a cylinder eacacity exceeding 1,500 CC but not exceeding 2,500 CC, inside customs areas shail be subjected to PPNBM with the tariff of 40% (forty percent).
(5) The import and the delivery of sedans/station wagons and motor vehicles for the transport of less than 10 (ten) persons including the driver as well as vans of the double propeller axle system (4 x 4) with spark-ignition internal combustion reciprocating piston engines of a cylinder capacity exceeding 3,000 CC or compression ingnition internal combustion piston engines (diesel/semi diesel) of a cylinder capacity exceeding 2,500 C', special purpose vehicles manufactured for golf vehicles, racing cars and the kind, trailers and semi-trailers of the caravan type f or housing or camping, inside customs areas shail be subjected to PPNBM with the tariff of 50% (fifty percent).
Article 3
The import of ail types of motor vehicles in compelerely knocked down condition which have the main characteristics of their motor vehicles by automotive assemblv manufacturers, shall be exempted from PpnBM.
Article 4
(1) In the case of the delivery being dorie inside customs areas, he basis for the imcosition of tax to calculate PPnBm as meant in Articles 1 and 2 shall be rhe selling price which is asked or should be asked for.
(2) In the case of import, the basis for he imoosition of tax tg calculate PPnBM as meant in Articles 1 and 2 shall be the import value used as the basis for the calculation of the amount of import duty, plus other import duties and levies which are imposed on the basis of the provisions of costoms laws force.
(3) In the case of the special relationships between manufacturers or imoorters and deaiersagents or distributors which cause the orice from manufacturers or importers to be lower than the seiling price which should be, the basis for the imposition of tax to calculate PPnBM owed shall be set at the same level selling price from dealers/agents, distributors.
(4) The selling price shall be considered to be affected by the special relationships as meant in paragraph (3), in he case of the difference between the selling price from automtive assemble manufacturers to dealers/agents or distributors surpassing a certain percentage stipiulated by he Director General of Taxation.
Afticle 5
Motor vehicles for the transport of people and ians modified trom chassis vehicles or iphicies for the transport of goods shall be subjected o PPnBM in accordance kivith the provisions as meant in Article 2.
Article 6 (1) The exemption from PPnBN shall apply in the following cases :
a.the import and/or the delivery of all types of motor vehicles inside customs areas for Indonesian Military/Police official duties and state protocol as far the funds are derived from State Budget/Regional Administration Budgets (APBN/APBD):
b.the import and/or the delivery of motor vehicles of the single propeller axle system (4 x 2), the double propeller axle system (4 x 4), buses, sedans/station wagons used for ambulances, police vans, fire engines, hearses and public transport vehicles inside customs areas;
c.the import and/or the delivery of motor vehicles used for motor vehicles for the transport of goods inside customs areas. (2) The Director General of Taxation can issue certificates of the exemotion from PPNBM to applications for the purchase of ambulances, police vans, fire engines, hearses, motor vehicle for official duties of the Indonesian Military/Police and for state protocol.
Article 7
Details and types of the motor vehicles as meant in Article 2 shall be as stipulated in Attacriment to this decree. Article 8
The Director General of Taxation shall further stipulate provisions on the im.olementation of this decree.
Article 9
With the enforcement of this decree, the Decree of the Minister of Finance No. 272/KMK.04/1995 dated June 28,1997 on variants and types of motor vehicles exempted from PPnBM shall be declared null and void.
Article 10 This decree shall come into force as from July 1, 1 999.
For public cognizance, this decee shall be published by placing it in State Gazette of the Republic of indonesia.
Stipulated in Jakarta On June 24 1999 THE MINISTER OF FINANCE
sgd
ATTACHME'NT
LIST OF MOTOR VEHICLES WHOSE DELIVERY IS SUBJECTED TO SALES TAX ON LUXURY GOODS
NO DESCRIPTION OF GOODS EXCEPT HS NUMBERS 1 2 3 4 I. Subjected to PPnBM as high as 10% (ten
percent)
a. Group of motor vehicles for the transport of 10 (ten) or more persons, including the driver
1. Ambulances, hearses, fire engines, police vans and public transport vehicles or vehicles for he transport of goods 2. Motor vehicles for the Indonesian
Military/Police official duties 3. Motor vehicles for state protocol a.1 Motor vehicles for the transport of 10
(ten) or more persons, including the driver, with spark-ignition internal combustion reciprocating piston engines or compression ingnition internal combustion piston engines Diesel/semi diesel) of all cylinder capacities/total weights
4. Motor vehicles in completely knocked down condition having the main characteristics of the relevant vehicles (CKD) which are imported by automotive assembly manufacturers
8702.10.110 8702.10.190 8702.10.910 8702.10.990 8702.90.110 8702.90.190 8702.90.910 8702.90.990 b. Group of motor vehicles for the transport
o£ less than 10 (ten) persons, including the driver, of the single propeller axle system (4 x 2)
1. Ambulances, hearses, fire engines, police vans and public transport vehicles or vehicles for the transport of goods 2. Motor vehicles for the Indonesian
Military/Police official duties 3. Motor vehicles for state protocol b.1 Motor vehicles for the transport of
less than 10 (ten) persons, including the driver, as well as vans of the single propeller axle system with spark igniton internal combustion reciprocating piston engines or compression ingnition internal combustion piston engines diesel/semi diesel) of a cylinder capacity riot exceeding 1,500 CC
4. Motor vehicles in completely knocked down condition having the -,naii characteristics of the relevant vehicles (CKI)) which are imported bv automotive assembly manufacturers
8703.21.911 8703.21.919 8703.22.911 8703.22.919 8702.31.911 8702.31.919
II.
a.
Subjected to ppnbm as high as 15% (fiften percent)
Group of motor vehicles for the transport of less than 10 (ten) mersons, including the driver, of the single propeller axle system (4 x 2)
1. Ambulances, hearses, fire engines, police vans and public transport vehicles or vehicles for the transport of goods 2. Motor vehicles for the Indonesian
Military/Police official duties 3. Motor vehicles for state protocol a.1 Motor vehicles for
the transport of less than 10 (ten) persons, including the driver, as well as vans of the single propeller axle System (4 x 2) with spark-ignition i:aterial combustion reciprocating Piston engines of a cylinder capacity exceeding 1,500 CC but riot exceeding 3,000 CC or compression ingnition internal combustion piston eng:Lnes diesel/semi diesel) of a cylinder capacity
exceeding 1,500 CC but not exceeding 2;500 CC.
4. Motor vehicles in completely knocked down candition naving the main characteristics of the relevant vehicles (CKD) which are imported by automotive assembly manufacturers
8703.23.911 8703.23.919 8703.32.911 8703.32.919
III. Subjected to PPNBM
a. Group of motor vehicles forthe transport of less than 10 (ten) persons, including the driver
1. Ambulances, hearses, fire engines, police vans and public transport vehicles or vehicles for the transport of goods 2. Motor vehicles for the Indonesian
Military/Police official duties 3. Motor vehicles for state protocol a.1
a.2
Sedans/station wagon for the transport of less thab 10 (ten) persons, including the driver, of cylinder capacity not exceeding 1,500 CC
Motor vehicles for transport of less than 10 (ten) person, including the driver, as well as vans of the single propeller axle system (4x2) whith spark-ignition internal combustion recipropcatingpiston engines of a cylinder capacity exceeding 3,000 CC or compression piston engines (diesel/semu diesel) of a cylinder capacity exceeding 2,500 CC and the double propeler axle system (4x4) of sparkingition internal cambustion reciprocating piston engines or compression indition internal cambustion piston engines(diesel/semu diesel) of a cylinder capacity exceeding 1,500 CC
4. Motor vehicles in completely knocked down candition naving the main characteristics of the relevant vehicles (CKD) which are imported by automotive assembly manufacturers
8703.21.110 8703.21.190 8703.22.110 8703.22.190 8703.31.110 8703.31.190 3703.21.921 8703.21.929 8703.22.921 8703.22.929 8703.24.911 8703.24.919
IV. Subjected to PPnBM as high as 40 % (forty) percent
a. Group of motor vehicles for the transport of less than 10 (ten) person, including the driver
1. Ambulances, hearses, fire engines, police vans and public transport vehicles or vehicles for the transport of goods 2. Motor vehicles for the Indonesian
Military/Police official duties 3. Motor vehicles for state protocol a.1 Sedans/ station wagons for the transport
of less than 10 (ten persons), including the driver, with spark-ignition internal reciprocating cambustion piston angines of a cylinder capacity exceeding 1,500 CC but not exceeding 3,000 CC
4. Motor vehicles in completely knocked down condition having tie main characteristics of the elevant vehicles (CKD) which are imported by automotive assembly manufacturers
8703.23.110 8703.23.190
a.2 Sedans/ station wagons for the transport of less than 10 (ten persons), including the driver, with compression ignition internal cambustion piston angines (diesel/semideisel) of a cylinder capacity exceeding 1,500 CC but not exceeding 3,000 CC
8703.32.110 8703.32.190
a.3 Motor vehicles for the transport of less than 10 (ten) persons, including the driver, as well as vans of the double propeller axle system (4x4) with spark-ingition internal receprocating cambustion piston engines of a cylinder capacity exceeding 1,500CC but not exceeding 3,000 CC
8703.23.921 8703.23.929
a.4 Motor vehicles for the transport of less than 10 (ten) persons, including the driver, as well as vans of the double propeller axle system (4x4) with compression ignition internal cambustion piston angines (diesel/semideisel) of a
cylinder capacity exceeding 1,500 CC but not exceeding 2,500 CC
V. Subjected to PPnBM as high as 50% (fifty) percents
a. Group Of two-wheel motorm vehicles 2. Motor vehicles for the Indonesian Military/Police official duties
a.1 Two-wheel motor vehicles of engines with a cylindercapacity exceeding 250 cc
3. Motor vehicles for state protocol
4. Motor vehicles in completely knocked down condition having tie main characteristics of the elevant vehicles (CKD) which are imported by automotive assembly manufacturers
8711.30.100 8711.30.900 8711.40.900 8711.40.900 8711.50.100 8711.50.900 ex.8711.90.000 b. Group of motor vehicles for the transport
of less than 10 (ten) persons, including the driver
1. Ambulances, hearses, fire engines, police vans and public transport vehicles or vehicles forthe transport of goods 2. Motor vehicles for the Indonesian
Military/Police official duties 3. Motor vehicles for state protocol b.1 Sedans/station wagons for the transport of
less than 10 (ten) persons, including the driver, with spark-ignition internal reciprocating combustion piston engines of a cylinder capacity exceeding 3,000 cc
4. Motor vehicles in completely knocked down condition having the main characteristics of the relevant vehicles (CKD) which are imported by automotive assembly manufacturers
8703.33.110 8703.33.190
b.2 Sedans/station wagons for the transport of less than 10 (ten) persons, including the driver, with compression ingtion internal combustion piston engines (diesel/semi diesel) of a cylinder capacity exceeding 2,500 cc
8703.33.110 8703.33.190
b.3 Motor vehicles for the transport of less than 10 (ten) persons, including the driver, as well as vans of the double propeller axle system (4x4) with sparkignition internal reciprocating combustion piston engines of a cylinder capacity exceeding 3,000 cc
8703.24.921 8703.24.929
b.4 Motor vehicles for the transport of less than 10 (ten) persons, including the driver, as well as vans of the double propeller axle system (4x4) with compression ignition internal combustion piston engines (diesel/semi diesel), of a cylinder capacity exceeding 2,500 cc
8703.33.921 8703.33.929
b.5 Special purposes vehicles manufactured for golf cars, racing cars and the kind
8703.10.000
b.6 Trailers and semi trailers of the caravan type for housing or camping
8716.10.000
Note : Tax restitution can be requested for PPNBM which is paid, in the case of motor vehicles being used for public or good transport vehicles.
THE MINISTER OF' FINANCE sgd
