Heaptalk, Jakarta — In addition to luxury cars, luxury motorcycles are also likely to be impacted by the 12% increase in value-added tax (VAT) on January 1, 2025. The 12% VAT provision for luxury vehicles has been confirmed by Sufmi Dasco, Deputy Speaker of the House of Representatives (DPR RI), during a press conference at the Presidential Palace in Jakarta.
“Luxury motorcycles are subject to 12% VAT if the government imposes new taxes based on the luxury goods sales tax (PPnBM) rate for luxury motorcycles for completely built-up (CBU) or fully imported units,” explained Sufmi Dasco.
According to Ministry of Finance Regulation No. 141/PMK.010/2021 on the Determination of Types of Motor Vehicles Subject to Sales Tax on Luxury Goods and the Procedures for Imposing, Granting, and Administering Exemptions, and Refunds of Sales Tax on Luxury Goods, there are provisions stating that motorcycles with engines above 250 cc fall into the luxury category. Here are the provisions:
Article 22
Two-wheeled or three-wheeled motor vehicles with an engine displacement of more than 250 cc up to 500 cc; or
Special vehicles designed for travel on snow, on the beach, in the mountains, or similar vehicles, subject to PPnBM at a rate of 60 percent.
Article 23
Then the types of taxable luxury goods include:
- Motor vehicles with an engine displacement of more than 4,000 cc;
- Two-wheeled or three-wheeled motor vehicles with an engine displacement of more than 500 cc; or
- Trailers, semi-trailers of the caravan type, for housing or camping, subject to PPnBM at a rate of 95 percent.
Here is a list of motorcycles potentially subject to the 12% VAT:
- Honda CB 650R, CBR 1000RR, XL 750, CB 500X, CFR 1100 L, Rebel 1100, Rebel 500, and Gold Wing 1800.
- Yamaha WR 155T, YZ 125X, YZ 250X, YZ 250 F, and YZ 250 FX.
- Kawasaki Ninja ZX 4 RR, Ninja ZX 6 RR, Ninja ZX 10 R, Ninja H2, Versys 650, Versys 1000, Versys 1100, and W800.
Additionally, there are many more luxury motorcycles in Indonesia with engines above 500 cc from BMW, Ducati, Harley-Davidson, KTM, Triumph, and Royal Enfield.
