Indonesia mulls reducing tax on EVs sales to 1% hinh anh 1Indonesia mulls reducing tax on EVs sales to 1% (Photo: AFP/VNA)

Jakarta (VNA) – Coordinating Ministry of Maritime Affairs of Indonesia said it is considering reducing the value-added tax on electric car sales from 11% to 1% to drive up demand and attract investment.

Septian Hario Seto, a senior official of the ministry, said the country has a target of having at least 1.2 million electric motorcycles and 35,000 electric cars in use by 2024.

He revealed the government will give a cash incentive of 7 million rupiah (467.6 USD) for every electric motorcycle sold until sales reach a certain volume that is still under discussion. However, the planned incentives may only be available for electric vehicles (EVs) that are at least 40% locally-made.

The official said the local content percentage will be increased further to 60% and more in the time ahead. The regulation laying out incentives for EVs is expected to be issued next week./.