Saturday, August 28, 2010

Vehicle Tax Increase Will Affect Automotive Industry

Tax rate increase of Motor Vehicles and Motor Vehicle Name Reverse Fee (BBNKB) that became effective on 1 September 2008, is feared will affect Indonesia's automotive industry. Tax increases and the cost behind the name will affect the selling price of the vehicle. Motor vehicle tax increase to reach around five percent, while BBNKB reached 10 percent.

Tariff increase of that size would have an impact on motor vehicle sales figures. The sales decline will also impact on the industry that can absorb approximately 194 thousand labor. The impact of successive tax increases that could be a rationalization of manpower.

Increase Motor Vehicle Tax and BBNKB is also very dependent on their respective local governments. Vehicle tax revenue included in item (PAD). If it does not rise, risk not getting the PSD, but if the rise would cost the community. The rate increase is, in fact, not only aims to increase local revenue, but also restrain the growth rate of motor vehicle and save on fuel usage.


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