Jakarta region exempts electric car owners from taxes due

The Jakarta provincial government has enacted regulations and incentives to attract interest in switching to electric vehicles.Electric Vehicles or Battery Electric Vehicles (Battery Electric Vehicles) or Battery Based KBLs are vehicles that are driven by an electric motor and derive their electric power source directly from a battery inside or outside the vehicle. The Head of Jakarta Tax Data and Information Center explained that the Jakarta Provincial Government has issued Jakarta Governor Regulation No. 38 of 2023 concerning the basis for the collection of motor vehicle tax and motor vehicle ownership transfer fee in 2023. One of these regulations these regulations regulate the tax policy for electric vehicles or battery-based electric vehicles (battery-based KBL). This statute provides a number of significant incentives for EV owners, particularly in relation to the motor vehicle tax (PKB) and the motor vehicle title transfer fee (BBNKB). The following are some of the many incentives in Article 10 of Jakarta Governor's Regulation No. 38 of 2023: Battery-based KBL PKB levy for transportation of people or goods is set at 0% of the basic PKB levy; Battery-based KBL PKB levy for public transportation is set at 0% of the basic PKB levy; Battery-based KBL for public goods transportation is set at 0% of the basic PKB levy; Battery-based KBL for public goods transportation is set at 0% of the basic PKB levy; Battery-based KBL for public transportation is set at 0% of the basic PKB levy. PKB levy is set at 0% of the basic PKB levy; battery-based PKB KBLs specified in subsections (1) to (3) do not include vehicles converted from fossil fuels to battery-based; second and subsequent ownership of battery-based KBLs is entitled to incentives and progressive rates do not apply; transfer of ownership of battery-based KBLs is granted incentives, not subject to the BBNKB, and is carried out in accordance with legal Provisions.

One of the main points of this governor's statute is the 0% PKB levy on battery-based KBLs, set at 0% of the basic PKB levy.This means that electric vehicles owned by individuals or companies are not subject to PKB at all, and this applies to both private and public vehicles that transport people and goods. It is important to note, however, that this policy does not apply to vehicles converted from fossil fuels to batteries, and converted vehicles continue to be subject to PKB under the normal motor vehicle rules.In addition to the removal of the PKB, incentives are provided in the form of the removal of the progressive tax rate for owners of the second and subsequent battery-based KBLs. Under normal circumstances, progressive tax is levied based on the number of vehicles owned by an individual or entity. With this policy, EV owners will not have to worry about the tax rate increasing as the number of EVs owned increases. Not only PKB, but the transfer of ownership of Battery-Based KBL is also given an incentive in the form of exemption from BBNKB. This means that there will be no BBNKB fee when a sale transaction or transfer of ownership of an electric vehicle occurs. This policy definitely makes owning an electric vehicle more attractive and affordable for the people of Jakarta. By offering various incentives, the Jakarta provincial government hopes to encourage people to switch to more environmentally friendly electric vehicles. This initiative is in line with the government's efforts to reduce greenhouse gas emissions and air pollution in the capital, and it is hoped that the increasing use of electric vehicles will make a significant contribution to making Jakarta a greener and healthier place. governor's regulation No. 38 of 2023 demonstrates the local government's serious commitment to supporting the transition to clean energy and sustainable transportation, and it is hoped that through this policy, there will be a growing interest in the use of electric vehicles so that Jakarta can become a pioneer in the use of environmentally friendly technologies in Indonesia.