Jakarta, Indonesia Sentinel — The Provincial Government of Jakarta (Pemprov DKI) is actively promoting the use of electric vehicles (EVs) in an effort to reduce air pollution and transform the city into a greener, more sustainable urban center. To encourage electric vehicles (EV) transition, the government has introduced a series of tax regulations and incentives aimed at expanding the adoption of EVs across the capital.
One key regulation supporting this initiative is Jakarta Governor Regulation (Pergub) No. 38 of 2023. This regulation establishes the basis for the imposition of Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Fee (BBNKB) for the year 2023, including provisions that specifically address battery-powered electric vehicles (Battery Electric Vehicles or BEVs).
According to Morris Danny, Head of the Data and Information Center of the Jakarta Regional Revenue Agency, the regulation offers substantial tax incentives to EV owners, particularly regarding Motor Vehicle Tax (PKB) and Vehicle Ownership Transfer Fee (BBNKB).
“This regulation provides significant incentives for electric vehicle owners, especially in terms of Motor Vehicle Tax (PKB) and Vehicle Ownership Transfer Fee (BBNKB),” said Danny on Wednesday, October 23, as reported by CNN.
In alignment with Article 10 of Pergub No. 38 of 2023, which underscores the government’s commitment to clean energy and sustainable transportation, the following incentives have been implemented:
- Motor Vehicle Tax (PKB) for battery-powered electric vehicles used for personal or commercial purposes is set at 0% of the taxable base.
- Motor Vehicle Tax (PKB) for battery-powered public transportation vehicles is also set at 0%.
- Motor Vehicle Tax (PKB) for battery-powered freight vehicles is set at 0%.
- These incentives do not apply to vehicles converted from fossil fuels to electric power.
- Progressive tax rates are not imposed on the ownership of a second or subsequent battery-powered vehicle.
- No Vehicle Ownership Transfer Fee (BBNKB) will be charged for the transfer of ownership of battery-powered vehicles, in accordance with the relevant legislation.
0% Motor Vehicle Tax for Electric Vehicles
One of the most notable aspects of this regulation is the 0% Motor Vehicle Tax (PKB) rate for battery-powered electric vehicles. This means that individuals or businesses owning electric vehicles, whether for private or commercial use, including passenger and freight vehicles, will not be subject to any motor vehicle tax.
However, this exemption does not extend to vehicles that have been converted from fossil fuel engines to electric power. These converted vehicles will still be subject to the standard motor vehicle tax rates.
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Elimination of Progressive Tax Rates
Another significant incentive is the elimination of progressive tax rates for owners of multiple electric vehicles. Typically, progressive taxes are applied based on the number of vehicles owned by an individual or entity. Under this new regulation, owners of multiple electric vehicles will not face increasing tax rates with the acquisition of additional EVs.
Exemption from Ownership Transfer Fees
In addition to the tax benefits, the transfer of ownership of battery-powered electric vehicles will also be exempt from the BBNKB. This means that the sale or transfer of electric vehicles will not incur any additional fees, making EV ownership more attractive and affordable for Jakarta residents.
These comprehensive incentives are expected to encourage more people to transition to electric vehicles, supporting the government’s broader efforts to reduce greenhouse gas emissions and combat air pollution.
The widespread adoption of electric vehicles is seen as a crucial step toward creating a greener, healthier Jakarta. Morris Danny expressed hope that the favorable tax policies will drive public interest in electric vehicles, positioning Jakarta as a leader in environmentally friendly technology.
(Raidi/Agung)
