How Are Luxury Car Tax Rules?

The obligation of luxury car tax regulations often sparks controversy in the country because many taxpayers or WP tend to delay their tax payments to the state. This is evident in domestic news showing inspections by the Jakarta Regional Tax and Retribution Agency. Many taxpayers delay their tax payments to the state because luxury car taxes are indeed quite high.

In fact, the government has now made it easier to pay motor vehicle taxes online so that taxpayers do not need to go to the tax office and wait in long lines. The tax payment process can be done from anywhere and at any time. 

What is PPnBM?

The luxury car tax is regulated under the PPnBM or Luxury Goods Sales Tax issued by the government. The luxury car tax regulations are outlined in Government Regulation (PP) Year 2014 number 22 and PMK – 64/ PMK.011 Year 2014. The luxury car tax itself is a sales tax imposed on special type vehicles. 

Meanwhile, the rate for online motor vehicle tax for luxury goods is regulated in several Government Regulations (PP) Year 2014 number 22 and Year 2013 number 41. These regulations govern the categories of goods subject to tax because they fall into the luxury goods category in the form of motor vehicles subject to PPnBM. 

Online and Offline Motor Vehicle Tax Rates for Luxury Cars

Regarding luxury vehicles subject to luxury goods tax, the tax rates are based on several factors including the engine capacity in cc, the size of the car such as the number of passengers it can carry, and the selling price of the car. Here are the tax rates for motor vehicles online and offline.

1. PPnBM Tax of 20% on Motor Vehicles

• Motor vehicles that use a semi-diesel system or diesel engines other than station wagons or sedans. These motor vehicles have an engine capacity of over 1500 cc up to 2500 cc with a single axle system 4 x 2.
• Vehicles with a double cabin in the form of vehicles with an open bed
• Motor vehicles that can carry people including the driver reaching under 10 people

2. PPnBM Tax of 10% on Motor Vehicles 

• Vehicles of semi-diesel type or diesel engines that use cylinder capacity
• Motor vehicles with a single axle system with 4 x 2 drive that have an engine capacity of up to 1500 cc
• The number of passengers and also the driver that can be carried from one to 15 people
• Motor vehicles that carry people including the driver under 10 people (this vehicle is not a station wagon or sedan) that use semi-diesel and diesel engine systems

3. PPnBM Tax of 30% on Motor Vehicles 

• Motor vehicles that use a semi-diesel system or diesel engines other than station wagons or sedans. These motor vehicles have an engine capacity of up to 1500 cc
• Motor vehicles with an engine capacity of 1500 cc with a two-axle drive system of 4 x 4.

4. PPnBM Tax of 50% on Motor Vehicles

A tax of 50% is imposed on all types of vehicles commonly used in golf games.

5. PPnBM of 125% is imposed on station wagons and sedans

If you intend to own a motor vehicle in the form of a luxury car, then understand the luxury car tax regulations first. Be a good citizen by paying taxes on time every year.