Jakarta – The financing or multifinance industry is predicted to experience a decline in motor vehicle financing. This decline is due to the provisions of the new “opsen” levy, aka additional new costs that will take effect in 2025. This additional burden will “trip” the growth of car sales and eventually “trip” multifinance as well.
According to Suwandi Wiratno, Chairman of the Indonesian Finance Companies Association (APPI), the financing industry is highly dependent on the automotive industry. The position of the financing sector is also in the downstream ecosystem of the automotive industry.
“If the automotive industry, both motorcycle and car, is corrected, we will also be affected. We are currently calculating the impact if this tax option will be implemented next year,” Suwandi told Infobank recently.
“We are coordinating with the motorcycle and car industry associations to calculate the potential impact of this tax option on the financing industry,” he added.
He continued, many finance companies provide loans or financing to people who want new vehicles or products so that the market continues to grow and the economy gets a positive impact.
“Currently, more than 70 percent of new product purchases are supported by the financing industry. If vehicle sales decline, the financing funds that we disburse will also decline, so indirectly the financing industry will not grow as previously predicted,” Suwandi said.
Read also: Tax Deposits Reach Rp1,688.93 T as of November 2024, 84.92 Percent of State Budget Target
Based on data from the Indonesian Automotive Industry Association (Gaikindo), car sales have decreased both on an annual and monthly basis. During January-November 2024, total whole sales of cars amounted to 784,788 units. This figure is down 14.7 percent year on year (yoy) from the same period in 2023 of 920,518 units.
The decline also occurred in retail sales which were recorded at 806,721 units, down 11.2 percent compared to the same period last year of 908,473 units.
Meanwhile, GAIKINDO Chairman I Jongkie Sugiarto is also worried about the impact of the tax opsen and the increase in Value Added Tax (VAT) to 12 percent in 2025. These two things risk suppressing the automotive industry.
“Indeed, next year there will be an increase in VAT, Tax Opsen, UMP and others. We expect it will be more difficult to get good sales figures,” Jongkie was quoted as saying on December 13, 2024.
Tax Opsen Applies in 2025
Tax opsen is an additional tax levy according to a certain percentage, based on Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).
Later, the district / city government collects accents from Motor Vehicle Tax (PKB), Motor Vehicle Title Transfer Fee (BBNKB).
Meanwhile, the provincial government can collect accents from Non-Metal Mineral and Rock Taxes (MBLB).
The motor vehicle tax opener will come into effect in January 2025. Motor vehicle users will be subject to two additional taxes, namely PKB and BBNKB accents.
In total, there are seven tax components that must be paid by new motor vehicle users, such as BBNKB, BBNKB opsen, PKB, PKB opsen, SWDKLLJ, STNK Adm Fee, and TNKB admin fee.
Read Also : Millennials, Here's How to Easily Own a House Without the Tax Burden
The PKB and BBNKB opsen rate is set at 66 percent calculated from the amount of tax payable.
For example, if a motor vehicle is subject to PKB of Rp1 million, there will be an additional accent of Rp660,000 (66 percent of PKB Rp1 million). So later, the expenditure for the vehicle tax including the accent will be Rp1.6 million.
However, to accommodate the opsen rate, the maximum rate of the parent tax is lowered first. In accordance with Law No. 1 Year 2022, the PKB rate is set at a maximum of 1.2 percent for the first ownership.
While for the second vehicle and so on (progressive tax) is set at a maximum of 6 percent. Meanwhile, the maximum BBNKB rate is set at 12 percent. (*)
The “Deadly” Effect of Motor Vehicle Opsen Tax Will “Trick” the Financing Industry
Jakarta – The financing or multifinance industry is predicted to experience a decline in motor vehicle financing. This decline is due to the provisions of the new “opsen” levy, aka additional new costs that will take effect in 2025. This additional burden will “trip” the growth of car sales and eventually “trip” multifinance as well.
According to Suwandi Wiratno, Chairman of the Indonesian Finance Companies Association (APPI), the financing industry is highly dependent on the automotive industry. The position of the financing sector is also in the downstream ecosystem of the automotive industry.
“If the automotive industry, both motorcycle and car, is corrected, we will also be affected. We are currently calculating the impact if this tax option will be implemented next year,” Suwandi told Infobank recently.
“We are coordinating with the motorcycle and car industry associations to calculate the potential impact of this tax option on the financing industry,” he added.
He continued, many finance companies provide loans or financing to people who want new vehicles or products so that the market continues to grow and the economy gets a positive impact.
“Currently, more than 70 percent of new product purchases are supported by the financing industry. If vehicle sales decline, the financing funds that we disburse will also decline, so indirectly the financing industry will not grow as previously predicted,” Suwandi said.
Read also: Tax Deposits Reach Rp1,688.93 T as of November 2024, 84.92 Percent of State Budget Target
Based on data from the Indonesian Automotive Industry Association (Gaikindo), car sales have decreased both on an annual and monthly basis. During January-November 2024, total whole sales of cars amounted to 784,788 units. This figure is down 14.7 percent year on year (yoy) from the same period in 2023 of 920,518 units.
The decline also occurred in retail sales which were recorded at 806,721 units, down 11.2 percent compared to the same period last year of 908,473 units.
Meanwhile, GAIKINDO Chairman I Jongkie Sugiarto is also worried about the impact of the tax opsen and the increase in Value Added Tax (VAT) to 12 percent in 2025. These two things risk suppressing the automotive industry.
“Indeed, next year there will be an increase in VAT, Tax Opsen, UMP and others. We expect it will be more difficult to get good sales figures,” Jongkie was quoted as saying on December 13, 2024.
Tax Opsen Applies in 2025
Tax opsen is an additional tax levy according to a certain percentage, based on Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).
Later, the district / city government collects accents from Motor Vehicle Tax (PKB), Motor Vehicle Title Transfer Fee (BBNKB).
Meanwhile, the provincial government can collect accents from Non-Metal Mineral and Rock Taxes (MBLB).
The motor vehicle tax opener will come into effect in January 2025. Motor vehicle users will be subject to two additional taxes, namely PKB and BBNKB accents.
In total, there are seven tax components that must be paid by new motor vehicle users, such as BBNKB, BBNKB opsen, PKB, PKB opsen, SWDKLLJ, STNK Adm Fee, and TNKB admin fee.
Read also: Millennials, Here’s How to Easily Own a House Without the Tax Burden
The PKB and BBNKB opsen rate is set at 66 percent calculated from the amount of tax payable.
For example, if a motor vehicle is subject to PKB of Rp1 million, there will be an additional accent of Rp660,000 (66 percent of PKB Rp1 million). So later, the expenditure for the vehicle tax including the accent will be Rp1.6 million.
However, to accommodate the opsen rate, the maximum rate of the parent tax is lowered first. In accordance with Law No. 1 Year 2022, the PKB rate is set at a maximum of 1.2 percent for the first ownership.
While for the second vehicle and so on (progressive tax) is set at a maximum of 6 percent. Meanwhile, the maximum BBNKB rate is set at 12 percent. (*)
