DistantNews
🇮🇩 Indonesia /Economy & Trade

Banten Province Exempts Electric Vehicle Taxes to Boost Clean Energy

From Tempo · (3h ago) Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • The Banten Provincial Government in Indonesia will exempt taxes on electric vehicles (EVs) to support national clean energy transition.
  • This policy aligns with a central government directive encouraging regional authorities to offer fiscal incentives for EVs.
  • While supporting environmental goals, the province acknowledges potential fiscal challenges due to reduced conventional vehicle tax revenue.

The Banten Provincial Government is stepping up to support Indonesia's national clean energy agenda by embracing the central government's call for tax exemptions on electric vehicles. This move, aligning with the Ministry of Home Affairs' directive, signifies a strong commitment to promoting environmentally friendly transportation within the province.

For electric vehicles, we follow the central government's regulations. If the central government has regulated it, we will follow.

— Achmad Dimyati NatakusumahDeputy Governor of Banten explaining the province's adoption of EV tax exemption policies.

As stated by Deputy Governor Achmad Dimyati Natakusumah, Banten will follow the central government's regulations regarding EV tax incentives. This includes waiving vehicle ownership tax (PKB) and vehicle name transfer tax (BBNKB) for battery-based electric vehicles. This decision is a clear endorsement of the transition towards cleaner energy sources and a healthier environment for Banten's residents.

However, the provincial government is also pragmatic about the fiscal implications. Deputy Governor Natakusumah pointed out the potential impact on the Regional Original Revenue (PAD) from conventional vehicle taxes. This dual consideration—championing environmental sustainability while managing fiscal health—is a delicate balancing act. The province has voiced these concerns in coordination forums with the central government, seeking a sustainable path forward.

This is two-sided. We want to be environmentally friendly, but on the other hand, there is an impact on PAD. This must be balanced.

— Achmad Dimyati NatakusumahDeputy Governor of Banten acknowledging the fiscal challenges associated with EV tax exemptions.

Despite these fiscal considerations, Banten remains steadfast in its commitment to implementing the new regulations. The provincial government assures that the on-ground application will be in line with the latest central government provisions, ensuring that the ecosystem for eco-friendly vehicles is fostered effectively within Banten. This proactive stance positions Banten as a key region in Indonesia's broader push towards electric mobility.

In principle, we follow the central government's regulations. For now, we will implement it according to the existing provisions.

— Achmad Dimyati NatakusumahDeputy Governor of Banten reaffirming the province's adherence to central government directives on EV incentives.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog