Jakarta (VNA) – Indonesia is planning to extend a luxury tax break on the sale of sedans and two-wheel drive cars with engine power of less than 1,500 cc to August to support its pandemic-hit automotive industry.

Indonesian Industry Minister Agus Gumiwang Kartasasmita said the extension of the lifting of the tax was at revitalizing demand for an industry "that has consistently contributed significantly to the national economy".

A spokesperson at the Finance Ministry said the plan was being discussed.

Indonesia in March announced tax break for car sales which is estimated at 2.99 trillion IDR (over 209.9 million USD) in a bid to boost its pandemic-hit economy. Thanks to the move, its car sales grew after months of sluggish sales due to the pandemic.

Total sales in 2020 were just over 532,000 units, about half the previous year.

According to Coordinating Minister of Economic Affairs Airlangga Hartarto, car sales in May rocketed 228 percent from a year earlier, while motorbike sales also saw a 277-percent surge year-on-year./.