New Determination of Types of Motorized Vehicles Subject to Sales Tax on Luxury Goods

On 30 March 2022, the Minister of Finance (MoF) issued a new regulation No. 42/PMK.010/2022 (“PMK-42”) as amendment of MoF regulation No. 141/PMK.010/21 (“PMK-141”) regarding the Determination of Types of Motorized Vehicles Subject to Sales Tax on Luxury Goods (LGST) and the Procedure for Imposition, Granting and Administration of Exemption, and Refund of Sales Tax on Luxury Goods.

The highlights of this regulation amendment are as follows:

  1. Types of motorized vehicles transporting people for the transportation of fewer than 10 persons including the driver that are subject to sales tax on luxury goods
    Description Machine Capacity Fuel Consumption CO2 Emission Level LGST Rate
    Motor vehicles with a spark-ignition reciprocating internal combustion piston engine with a cylinder capacity not exceeding 3,000 cc, including hybrid vehicles ≤ 3000 cc > 15.5 km/liter < 150 gram/km 15%
    Motor vehicles with compression-ignition internal combustion piston engines (diesel or semi-diesel) with a cylinder capacity not exceeding 3,000 cc, including hybrid vehicles ≤ 3000 cc > 17.5 km/liter < 150 gram/km 15%
  2. Types of motorized vehicles with double cabins subject to sales tax on luxury goods
    Description Machine Capacity Fuel Consumption CO2 Emission Level LGST Rate
    Motor vehicles with a dual cabin with a spark-ignition internal combustion piston engine, GVW not exceeding 5 tons, including hybrid vehicles ≤ 3000 cc > 15.5 km/liter < 150 gram/km 10%
    11.6 – 15.5 km/liter 150 – 200 gram/km 12%
    <= 11.6 km/liter >= 200 gram/km 15%

    > 3000 up to

    ≤ 4000 cc

    > 15.5 km/liter < 150 gram/km 20%
    11.6 – 15.5 km/liter 150 – 200 gram/km 25%
    <= 11.6 km/liter >= 200 gram/km 30%
    Motor vehicles with a dual cabin with a compression ignition internal combustion piston engine (diesel or semi-diesel), GVW not exceeding 5 tons, including hybrid vehicles ≤ 3000 cc > 17.5 km/liter < 150 gram/km 10%
    13.1 – 15.5 km/liter 150 – 200 gram/km 12%
    <= 13,1 km/liter >= 200 gram/km 15%

    > 3000 up to

    ≤ 4000 cc

    > 17.5 km/liter < 150 gram/km 20%
    13.1 – 15.5 km/liter 150 – 200 gram/km 25%
    <= 13.1 km/liter >= 200 gram/km 30%
    Motor vehicle with double cabin with only electric motor for propulsion, GVW not exceeding 5 tons 10%
  3. Other types of motorized vehicles subject to sales tax on luxury goodPMK-42/2022 became effective on 1 April 2022.
    Description PPnBM Tariff
    Two- or three-wheeled motor vehicles with a reciprocating internal combustion piston engine with a cylinder capacity exceeding 250 cc but not exceeding 500 cc 60%
    Two- or three-wheeled motor vehicles with a reciprocating internal combustion piston engine with a cylinder capacity exceeding 500 cc 95%

PMK-42/2022 became effective on 1 April 2022.

how can we help you?

Contact us at the Consulting WP office nearest to you or submit a business inquiry online.

see our gallery

Looking for a First-Class Tax and Business Consultant?