Indonesia remove taxes on electric vehicles in the draft

The Indonesian Ministry of Energy and Mineral Resources proposes the tax exemption of electric vehicles to encourage environmentally friendly mobility and reduce imports of fuel oil. The ministry filed for beleid removing of motor vehicle taxes and motor vehicle sales charges for electric vehicles.

Tinuku Indonesia removes taxes on electric vehicles in the draft

Indonesia's Minister of Energy and Mineral Resources, Ignatius Jonan, said motor vehicle taxes and motor vehicle sales charges for electric vehicles are unnecessary. The proposal has been included in the presidential regulation being drafted as government incentives for electric vehicles.

"We have proposed to dispose of the two types of taxes in the draft to discuss whether will be approved or rejected," Jonan said on Monday.

Jonan said removing both types of tax will lower the price of electric vehicles where the switching use of electric vehicles will be faster. The ministry will no longer need to provide special incentives for the electric vehicle industry where developers will be able to compete.

"In addition to reducing pollution, our goal is to reduce fuel import by about 1.6 million barrels," said Jonan.

Triangle Motorindo as one of the electric motorcycle manufacturers said the removing of these two taxes will reduce the price of electric motorcycles up to Rp2 million (US$147). The company has sold electric scooters branded Viar Q1 at price of Rp16,7 million (US$1229) per unit.

"This will certainly help sales and improve the development of electric vehicles," said Corporate Maneger of Triangle Motorindo, Deden Gunawan.