JAKARTA. Automotive entrepreneurs doubt that the government will eliminate new car tax, which is intended as an incentive to support the automotive market.

President Commissioner of PT Indomobil Sukses International Tbk (IMAS) Soebronto Laras explained this doubt on the grounds that tax from the automotive sector was very large.

He also revealed that before COVID-19, the state received Rp84 trillion in tax from the automotive sector. "If the government has to provide the stimulus, then the potential will disappear," said Soebronto, as quoted from cnbcindonesia.com this week.

The automotive sector is indeed provide large income for the central government and regional governments. The central government gets a larger share, mainly from sales tax on luxury goods (PPnBM) and value added tax (VAT) Meanwhile, regional governments receives income from motor vehicle tax (PKB) as much as 2.5% and the Transfer of Motor Vehicle Title Fee (BBNKB). (AM/AR)