Generous tax incentives will boost car sales, revive Indonesia's battered vehicle sector

Published Mon, Apr 12, 2021 · 05:50 AM

Cars

Jakarta

IT'S A deal just too good to pass over. Indonesians are rushing out to showrooms to buy new cars after the government announced a removal of the luxury tax on some car models from March to May this year.

Car dealers reported twice the number of car sales in March, compared to the previous month, a sharp turnaround from 2020 when most vehicle players experienced a 40 per cent drop in sales due to the impact of the Covid-19 pandemic.

"We will never have another opportunity such as the current tax incentive for new cars," said a senior executive of a logistics firm who just purchased a new Honda City Hatchbac…