On 13 October 2019, the Indonesian Government issued Government Regulation No. 73 of 2019 (“GR-73”) concerning Taxable Goods Classified as Luxurious in the form of Motor Vehicles which are Subject to Sales Tax on Luxury Goods (LGST).

This GR-73 regulates that LGST is no longer determined by the shape of the vehicle body but rather by the amount of exhaust gas emissions or fuel consumption.

The important points of GR-73 can be summarized as follows:

• Classification of Motor Vehicles for Transportation of Passengers depends on the passenger capacity, the cylinder volume, or type of electric engine. The LGST rates for this category range from 15% to 70%.
• Classification of Double Cab Vehicles depends on the cylinder volume or type of electric engine. The LGST rates for this category range from 10% to 30%.
• Classification of Low Carbon Emission Four-Wheeled Motor Vehicles depends on the technology used in the vehicles. The technologies include Full Hybrid and/or Mild Hybrid technology, Flexy Engine (Bio Fuel 100) technology, Plug-In Hybrid Electric Vehicle technology, Battery Electric Vehicles, Fuel Cell Electric Vehicles, and Low-Cost Green Cars. The LGST rates for this category range from 15% to 30%. The assessment bases for this class are also stipulated in the regulation.
• Classification of Other Motor Vehicle Types made for specific purposes such as golf carts, special vehicles for traveling on snow, beaches, mountains, or similar vehicles; trailers, semi-trailers of the caravan type, for housing or camping; the rates range from 50% to 95%.
• The following Motor Vehicles are exempted from LGST: ambulances, hearses, fire trucks, prisoner transport vehicles, public transport vehicles, vehicles for protocol purposes, and police/military service vehicles.

The previous regulation, Government Regulation No. 41 of 2013 (“GR-41”), has been revoked. This GR-73 becomes effective on 16 October 2021 (two years from the announcement date).