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Regulation No. 42/PMK.010/2022 concerning the Determination of Types of Motorized Vehicles Subject to Sales Tax on Luxury Goods

Source: International Energy Agency
Last updated: 2 February 2023

Regulation No. 42/PMK.010/2022 amends a former 2021 regulation to provide adjustments on the exemption of Luxury-Goods Sales Tax (LGST). 

This tax exemption applies partially to:

  • Gasoline and diesel ICEs with a cylinder capacity not exceeding 3,000 cc, including hybrid vehicles (15% of the LGST rate)
  • Motor vehicles with a dual cabin with a spark-ignition internal combustion piston engine, GVW not exceeding 5 tons, including hybrid vehicles (10-30% of the LGST rate)
  • 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 (10-30% of the LGST rate)
  • Motor vehicle with double cabin with only electric motor for propulsion, GVW not exceeding 5 tons  (10% of the LGST rate)
  • 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% of the LGST rate)
  • Two- or three-wheeled motor vehicles with a reciprocating internal combustion piston engine with a cylinder capacity exceeding 500 cc (95% of the LGST rate). 



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