Govt. Redefines Classification of Motor Vehicles Subject to PPnBM

The Ministry of Finance (“Ministry”) has issued Regulation No. 33/PMK.010/2017 (“Amendment”), which amends Ministry Regulation No. 64/PMK.011/2014 on Types of Motor Vehicle Subject to Luxury-Goods Sales Tax and Procedures for the Granting of Exemptions from Luxury-Goods Sales Tax (“Regulation 64/2014”).In essence, the Amendment has been issued for the purpose of updating the list of motor-vehicle types which are subject to luxury-goods sales tax (Pajak Penjualan atas Barang Mewah–“PPnBM”), as mandated by Ministry Regulation No. 6/PMK.010/2017 on Classifications of Goods and the Imposition of Import Duty upon Imported Goods (“Regulation 6/2017”). [1] Scope of RevisionIn order to update the types of motor vehicle which are subject to PPnBM, the Amendment replaces Appendices I to VII to Regulation 64/2014 with Appendices I to VII to the Amendment. [2] These appendices basically list descriptions of PPnBM objects, as well as their harmonized system codes. These lists are then divided into seven groups based on the relevant PPnBM tariffs (i.e. 10%, 20%, 30%, 40%, 50%, 60% or 125%). [3] As background information, the abovementioned replacement was made in response to the issuance of the World Customs Organization’s Harmonized System Nomenclature 2017 Edition, as well as to the ASEAN Harmonised Tariff Nomenclature 2017. [4] Points of RevisionIn general, the vehicle details which are set out under Appendices I to VII to the Amendment are similar to the details which are provided under Appendices I to VII to Regulation 64/2014. Nevertheless, Appendices I to VII to the Amendment do introduce a number of modifications, as described below: [5]