New Regulation on Luxury Tax on Motor Vehicles

Government Regulation No. 41 of 2013 on Taxable Goods Classified as Luxurious in the Form of Motor Vehicles Subject to Luxury Goods Sales Tax (“2013 Regulation”) was recently issued to support the government’s low carbon emission program through the promotion of fuel efficient and environmental friendly motor vehicles, i.e., low cost green cars, hybrid cars, electric cars, and biofuel cars.