Luxury Car Tax in Indonesia, here's how to calculate it

 Owning a luxury car is a matter of pride for automotive lovers. By having it, as if it can increase social status in the eyes of society.

Having a luxury car is certainly not just being able to buy it. But you also have to be prepared to pay the taxes. Friends need to know, cars with this type and segment have a special tax that is borne, namely Sales Tax on Luxury Goods or PPnBM.

So what types of cars are subject to the luxury tax? Some types of cars that are subject to a luxury goods tax have the qualifications of a supercar model vehicle. Supercars are often identified with luxury cars that have aerodynamic designs and high-powered engines. 

This supercar can be driven up to a speed of 320 kilometers per hour. In Indonesia, supercars are categorized based on engine capacity (3,000 to 5,000 cc). 

Supercar type cars also include imported cars intact or completely Built Up (CBU). Therefore, the tax imposed is not only Sales Tax on Luxury Goods (PPnBM) but also PPh article 22 or 10 percent of imported goods. 

In the supercar category, there are several car manufacturers that we already know, including Lamborghini, Ferrari, Porsche and so on. Then SUV cars to two-door sedans which are priced at billions of Rupiah are also subject to a luxury car tax. 

In Indonesia, luxury car taxes are expensive. Sales tax on luxury goods can reach 125 percent of the 10 percent VAT. Therefore, people who can afford luxury cars can certainly have above average income, because the more expensive the car is, the more expensive the taxes will be. 

The annual tax rate that must be paid by luxury car owners 

There are two taxes that have to be paid by luxury car owners, namely the Transfer Fee for Motor Vehicles (BBNKB) and Motor Vehicle Tax (PKB) and a luxury car tax based on ownership. 

For BBN KB the amount is 10 percent of the vehicle price. While the PKB amounted to 1.5 percent of the selling value of the vehicle.

We take the example of the owner of the Lamborghini Aventador LP700 4 Roadster for Rp. 13 billion. From the price of the car, BBNKB is charged Rp 1.3 billion. 

As for the PKB, Rp 13 billion x 1.5 percent, which is Rp 195 million. Then there is another additional fee for the Mandatory Traffic Accident Fund Contribution (SWDKLLJ) which is Rp. 140 thousand. Then the Lamborghini Aventador tax can be calculated with IDR 1.3 billion (BBN KB) + IDR 195 million (PKB) and IDR 140 thousand SWDKLLJ, which is IDR 1.495 billion. 

Please note, the amount of tax for luxury cars is imposed by the central and local levels. At the central level in the form of VAT, PPnBM which is collected when purchasing luxury cars. Meanwhile, at the regional level, PKB and BBNKB are imposed. Unless the 0 percent car tax relaxation is realized, the PKB and BBNKB will no longer be imposed.

This tax is imposed based on the sale value of the vehicle and the weight of road damage caused by the vehicle. The weight of damage is calculated based on pressure, type of fuel, to the type of vehicle, usage and year of manufacture of the vehicle. 

Meanwhile, the PKB rate is set at a minimum of 1 percent and a maximum of 2 percent for the first ownership. The second ownership and so on are subject to a progressive rate of 2 percent to 10 percent.

Considering the nominal amount of the luxury car tax, car owners are advised to fulfill their obligations on time. Because, not a few cases that happened to the owners of luxury cars who were given sanctions in the form of fines, blocking to confiscation of luxury cars.

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