To encourage the development of the electric car industry or environmentally friendly vehicles, the formula for determining the rate of Sales Tax on Luxury Goods (STLG) for vehicles now refers to the level of carbon dioxide (CO2) emissions and fuel consumption.
The amendments set forth in the Minister of Finance Regulation (PMK) number 141/PMK.010/21 take effect from 16 October 2021.
This regulation also revokes the previous provision regarding the imposition of STLG on vehicles, namely PMK Number 33/PMK.010/2017 which only regulates the imposition of STLG rates based on cylinder capacity.
Thus, with the new regulation, the lower the level of carbon emissions produced, the STLG rate for the car will be smaller.
In addition to imposing a low rate, the basis for imposing STLG on environmentally friendly cars is also below the selling price. However, with varying levels depending on the amount of CO2 emissions and fuel consumption.
For example, for a car with a cylinder capacity of 1,200 ccs with minimum fuel consumption of 20 liters per kilometer or a maximum CO2 emission level of 120 grams per kilometer, the STLG rate is 15% of the selling price.
Investment Realization
In fact, the basis for the imposition of STLG can be even smaller, if Indonesia succeeds in developing the electric car industry or vehicles with battery-electric vehicles technology.
This is because the regulation states that the basic value of STLG imposition will be higher after two years the company has realized its investment commitment in developing electric cars, at least IDR 5 trillion or when it is successful in production. (see table)
| Vehicle | Technology | Cylinder Capacity | Konsumsi Bahan Bakar | Emisi CO2 | Rate | Basic rate of STLG (From the selling price) | ||
| Before Investment Realization | After Investment Realization | |||||||
| Spark Ignition Engine | Full Hybrid | < 3.000 cc | 23 km / liter | <100 gr / km | 15% | 40% | 66 (2/3)% | |
| Compression-Ignition Engine Full Hybrid | Full Hybrid | <3.000 cc | 26 km / liter | <100 gr / km | 15 | 40% | 66 (2/3)% | |
| Spark Ignition Engine | Full Hybrid | ≤ 3.000 cc | 18,4 km / liter | 100-125 gr / km | 15% | 46 (2/3)% | 73 (1/3)% | |
| Compression-Ignition Engine Full Hybrid | Full Hybrid | ≤ 3.000 cc | 20 km / liter | 100-125 gr / km | 15% | 46 (2/3)% | 73 (1/3)% | |
| Spark Ignition Engine | Full Hybrid | ≤ 3.000 cc | >15,5 - 18,4 km / liter | >125 - 150 gr / km | 15% | 53 (1/3)% | 80% | |
| Compression-Ignition Engine Full Hybrid | Full Hybrid | ≤ 3.000 cc | >17,5 - 20 km / liter | >125-150 gr / km | 15% | 53 (1/3)% | 80% | |
| Spark Ignition Engine | Mild hybrid | ≤ 3.000 cc | >23 km / liter | <100 gr / km | 15% | 53 (1/3)% | 80% | |
| Compression-Ignition Engine Full Hybrid | Mild Hybrid | ≤ 3.000 cc | > 26 km / liter | < 100 gr / km | 15% | 53 (1/3)% | 80% | |
| Spark Ignition Engine | Mild Hybrid | ≤ 3.000 cc | >18,4 - 23 km / liter | ≤ 125 gr / km | 15% | 66 (2/3)% | 86 (2/3)% | |
| Compression-Ignition Engine Full Hybrid | Mild Hybrid | ≤ 3.000 cc | > 20-26 km / liter | 100 - 125 gr / km | 15% | 66 (2/3)% | 86 (2/3)% | |
| Spark Ignition Engine | Mild Hybrid | ≤ 3.000 cc | > 15,5 - 18,4 km / liter | >125-150 gr / km | 15% | 80% | 93 (1/3)% | |
| Compression-Ignition Engine Full Hybrid | Mild Hybrid | ≤ 3.000 cc | > 17,5 - 20 km / liter | >125 - 150 gr / km | 15% | 80% | 93 (1/3)% | |
| Plug-in Hybrid electric vehicles | - | > 28 km / liter | ≤ 100 gr / km | 15% | 33 (1/3)% | 53 (1/3)% | ||
Meanwhile, electric cars or vehicles with battery-electric vehicles technology or fuel cell electric vehicles is STLG-free since they are subject to a 15% tariff with a tax base of 0% of the selling price.
The level of carbon emission and fuel consumption will be determined by the ministry of industry. However, if the ministry of industry has not issued a report on the test results, the level of carbon emissions and fuel consumption can use the test results of manufacturers or test agencies in the country of origin of the vehicle.
Nonetheless, when the test result of the ministry of the industry is higher than the result of the manufacturer's test, the taxpayer must pay for the STLG shortage. On the other hand, if it is lower, the taxpayer can apply for restitution or a refund.
STLG Exception
The latest regulation also stresses that for the delivery of CKD vehicles, chassis, transportation of goods for two-wheeled vehicles with a capacity of up to 250 cc and vehicles for transporting more than 16 people are not subject to STLG.
In addition, it was also emphasized that the import of vehicles for the transportation of corpses, the transportation of prisoners, public transportation, firefighters, state protocols as well as for the security services of the Indonesian Armed Force (TNI)/ the Indonesia National Police (POLRI), is STLG-free.
This facility can be used as long as the taxpayer has an STLG Exemption Certificate (SKB) from the Directorate General of Taxes (DGT). If not, then the STLG payable must still be paid.
