Fortuner and Innova PPnBM price discounts and how to calculate them

Nafa Lightyani

Fortuner and Innova PPnBM price discounts and how to calculate them

Rancakmedia.com – In 2021, the Indonesian government announced the decision to abolish PPnBM, one of which is Fortuner and Inova. Here's a snippet PPnBM Fortuner and Innova what you need to know.

This decision aims to increase vehicle sales and encourage domestic economic growth.

In this decision, the Toyota Fortuner and Innova are included in the luxury vehicle category which will receive a tax write-off.

The Indonesian government issued a policy to increase the PPnBM rate for motor vehicles from 0% to 5% for cars with engine capacities above 1.500 cc.

What is PPnBM

This policy certainly has an impact on the prices of cars subject to the tax, including the Fortuner and Innova. Fortuner and Innova are two cars made by Toyota that are quite popular in Indonesia.

The Fortuner is a large SUV designed to traverse various terrains, while the Innova is a comfortable and practical MPV car for family needs. These two cars are Toyota's mainstay in Indonesia and are one of the best-selling cars in their segment.

The impact of PPnBM on Fortuner and Innova is quite significant. The increase in the tax rate from 0% to 5% makes the prices of these two cars increase by around 15-20 million rupiah.

Increasingly expensive prices certainly have an impact on consumers' purchasing power, especially during a pandemic like now.

Toyota, as the largest car manufacturer in the world, is certainly not remaining silent in facing the new PPnBM policy.

Toyota is trying various marketing strategies to keep attracting consumer interest, even though the prices of their cars are rising.

What is PPnBM

PPnBM or Sales tax on luxury goods is a tax imposed on the sale of luxury goods that are not subject to VAT or Value Added Tax.

PPNBM is a type of tax regulated in tax law in Indonesia.

Luxury goods that are subject to PPnBM are goods whose prices are above a certain limit set by the government, such as cars, motorbikes, jewelry and other luxury goods.

This PPNBM is imposed when the goods are sold or handed over to the final consumer.

PPNBM rates vary depending on the type of luxury goods subject to tax. The government can set different rates according to the existing luxury goods categories. PPNBM rates are usually higher than VAT rates.

Revenue received from PPNBM will be used for infrastructure development and other public interests. Therefore, PPNBM is considered an important source of state revenue.

For producers or sellers of luxury goods, PPNBM is one of the factors that must be taken into account in determining the selling price of goods.

As consumers, we must know whether a luxury item is subject to PPNBM or not so that we can calculate the costs that must be incurred.

Types of PPNBM

Types of PPNBM

There are several types of PPNBM imposed in Indonesia, including:

1. Car VAT

Car PPNBM is imposed on cars with a selling price above IDR 150 million. Car VAT rates vary between 10% – 30% depending on the type of car being sold.

For example, gas-fueled cars with engine capacities above 3.000 cc will be subject to PPNBM of 30%.

2. PPNBM Motorcycle

Motor PPNBM is imposed on motorbikes with a selling price above IDR 5 million. PPNBM rates for motorbikes vary between 10% – 30% depending on the type of motorbike being sold. For example, motorbikes with engine capacities above 250 cc will be subject to PPNBM of 20%.

3. PPNBM on Luxury Goods

Luxury Goods PPNBM is imposed on luxury goods such as jewelry, watches, cameras and other items whose price is above IDR 1 billion. Luxury Goods PPNBM rates vary between 10% – 20%.

4. PPNBM on Cruise Ships

Cruise Ship PPNBM is imposed on cruise ships used for tourism with a minimum passenger capacity of 50 people. The PPNBM rate for cruise ships is 10%.

5. PPNBM on Cigarettes

PPNBM on cigarettes is imposed on cigarettes at a rate of 10%. Each type of PPNBM has different rates depending on the type of goods subject to tax.

The government can set or change the PPNBM rates according to needs to increase state revenues.

Impact of Fortuner and Innova

Impact of Fortuner and Innova

Fortuner and Innova are two types of cars produced by Toyota. The Fortuner is a larger and more sturdy SUV (Sport Utility Vehicle), while the Innova is a smaller and sleeker MPV (Multi Purpose Vehicle).

These two cars are very popular in Indonesia and are used for various purposes such as personal, family and business vehicles.

Fortuner and Innova are also famous for the toughness and reliability of their engines, so many Indonesians choose them as their favorite vehicles.

PPnBM or Sales Tax on Luxury Goods is a tax imposed on the purchase of certain motorized vehicles, including the Fortuner and Innova.

The impact of PPnBM on the Fortuner and Innova is an increase in the selling price of these two cars.

This price increase occurred because the Indonesian government increased PPnBM rates at the beginning of 2021, which had an impact on increasing motor vehicle prices.

This makes the prices of the Fortuner and Innova more expensive than before, which then has an impact on sales of these two cars. However, the impact of PPnBM is not only visible on vehicle selling prices.

The Indonesian government has decided to provide PPnBM incentives for motorized vehicles with engine capacities under 1.500 cc, which is expected to encourage demand and production of vehicles with small engine capacities in Indonesia.

So, the impact of PPnBM can have a positive impact on other motorized vehicles, especially those with engine capacities below 1.500 cc.

Fortuner and Innova PPnBM price discount

After PPnBM was implemented, the prices of the Fortuner and Innova increased. This price increase occurred due to additional PPnBM rates imposed by the Indonesian government at the beginning of 2021.

For Fortuner, the price increase is around 8-15 million rupiah depending on the type and variant of the car. For example, the price of the Fortuner GA/T increased from around 534 million rupiah to around 548 million rupiah after PPnBM was implemented.

Meanwhile for Innova, the price increase ranges from 5-12 million rupiah depending on the type and variant of the car.

For example, the price of the Innova Reborn VA/T increased from around 393 million rupiah to around 405 million rupiah after PPnBM was implemented.

However, keep in mind that the prices of the Fortuner and Innova after PPnBM is implemented may vary depending on the region and the car dealer selling them.

Fortuner and Innova PPnBM price discount

Therefore, you should first check the price of the car you want at an official dealer or the official Toyota website.

The Future of PPnBM Fortuner and Innova

PPnBM or Sales Tax on Luxury Goods is a type of tax imposed on goods that are considered luxury or have high value, such as cars.

Fortuner and Innova are two types of cars from Toyota that are quite popular in Indonesia and both are subject to PPnBM.

The future of PPnBM Fortuner and Innova depends on government policy regarding this tax.

Currently, the government has issued a policy to change PPnBM rates for new cars, where PPnBM rates are based on the type of engine and type of fuel used.

The current PPnBM rate for Fortuner and Innova is 10% for petrol engines and 5% for diesel engines.

However, tax policies can always change depending on economic conditions and government policies.

It is possible that in the future, the Fortuner and Innova PPnBM rates may change depending on government policy and the country's fiscal needs.

Apart from that, the future of PPnBM Fortuner and Innova is also influenced by technological developments and competition in the automotive market.

Toyota as a car manufacturer must continue to innovate and update its products to remain competitive in the market. This can also affect the selling price of the Fortuner and Innova as well as the PPnBM rates that will be charged in the future.

In the long term, there is a tendency for governments to pursue greenhouse gas emissions targets and switch to electric cars.

This could have an impact on Fortuner and Innova PPnBM rates which might be higher if this policy is implemented widely.

Overall, the future of PPnBM Fortuner and Innova depends on various factors, including government policy, technological developments and competition in the automotive market.

How to Calculate PPnBM for Fortuner and Innova

How to Calculate PPnBM for Fortuner and Innova

In Government Regulation Number 41 of 2013 concerning Taxes on Exclusive Goods in the Form of Motorized Vehicles, Marketing Tax on Exclusive Goods is Subject to Marketing Tax.

Fortuner and Innova get PPnBM discounts, prices down by IDR 80 million. Fortuner and Innova are contained in 4×2 vehicles with a capacity of less than 2.500 cc which are subject to a 20% PPnBM fee. Fortuner 4×4 is subject to a PPnBM fee of 40%.

If you look at the replication, the sales value of the Fortuner could drop to IDR 80 million and the price of the Innova IDR 53 million. Here's the replication:

Taking the example of the Fortuner 4×2 2.4 GM/T Diesel which is currently marketed at a price of IDR 512.000.000 (OTR Jakarta),

The selling value of a 4×2 2.4 GM/T Diesel motor vehicle (NJKB) is the Minister of Home Affairs Regulation No. of 2021, therefore the following is the calculation:

= (NJKB x weight coefficient) x PPnBM value 20%

= (Rp. 382.000.000 x 1.050) x 20%

= Rp80.220.000

In general, OTR prices include PPnBM. If 0% PPnBM is removed, what is the discount?

OTR prices are reduced by the PPnBM range

= IDR 512.000.000 – IDR 80.220.000
= IDR 431.780.000

For Innova, take the example of the Innova M/T Gasoline which is currently marketed at a price of IDR 342.400.000.

PPNBM Luxury Goods

Sales Value of Innova 2.0 M/T Diesel Motor Vehicles (NJKB) from Minister of Home Affairs Regulation No. one year 2021 found an amount of IDR 382.000.000 and a weight coefficient of 1.050. The following is calculated:

= (NJKB x weight coefficient) x PPnBM value 20%

= (IDR 256.000.000 x 1.050) x 20%

= IDR 53.760.000

How much will the Innova M/T price be reduced if there is no 0% PPnBM?

IDR 342.400.000 – IDR 53.760.000 = 288.640.000

Conclusion

Overall, the future of PPnBM Fortuner and Innova depends on various factors, including government policy, technological developments and competition in the automotive market.

That's the information about Fortuner and Innova PPnBM discounts and how to calculate them, hopefully the article above can be useful and helpful for all of you.

Also Read

Share:

Nafa Lightyani

I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends.