Automotive Sector Getting Tax Cuts

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Suzuki CIkarang

ThePresidentPost.com  – Three Japanese automotive company to obtain tax relief in the form of tax allowance from the government. PT Suzuki Indomobil Motor (SIM), PT Toyota Motor Manufacturing Indonesia (TMMI) and PT Hino Motors Manufacturing Indonesia (HMMI).

Industry players are happy with this decision due to relieve the burden of the current automotive market conditions. Gunadi Sindhuwinata, Commissioner of PT Indomobil Sukses Internasional Tbk (IMAS), the parent of the SIM to call this incentive awaited businessman. “We get it by the rules,” said Gunadi, Monday (21/9).

Gunadi call this policy could improve Indonesia’s investment climate. Therefore, the tax allowance made investors believe to invest in Indonesia.
Granting tax allowance for the three automotive companies refers to Government Regulation (PP) No. 52/2011 and Government Regulation No. 18/2015. “Granting a tax allowance has been within the rules,” said Haris Munandar, Head of Industrial Research and Development (ARDI) of the Ministry of Industry.

Realization of the tax allowance for the third automotive company is shaped, net of income tax reduction of 30% of the total investment for six years, respectively by 5% per year.

SIM receiving facility because it adds an investment tax allowance of Rp 11.65 trillion to build the plant. SIM Factory in Cikarang has been operating in May 2015 with a production capacity of 200,000 units per year. Granting tax allowance to TMMI also done because the same thing. TMMI add an investment of Rp 2.76 trillion. Unfortunately, management declined to comment TMMI related revenues this tax allowance.