Indonesia Offers 0% Import Duty and Tax Benefits to BYD, GAC Aion, and Citroen
Indonesia has made a big announcement to encourage the manufacturing of electric vehicles. In 2024, companies like BYD, GAC Aion, and Citroen will be exempted from 0% import duty and 15% VAT (luxury tax). This information was given by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and Industry Minister Agus Gumiwang Kartasasmita.
The Indonesian government has decided to continue the VAT exemption policy for battery-powered four-wheel electric vehicles next year as well. Under this, these companies will get big tax exemptions, which will enable them to promote local production.
Three Big Companies will Build Production Plants
In 2024, BYD, GAC Aion and Citroen will set up their production plants in Indonesia. Through these plants, the Indonesian government will not only increase employment opportunities but will also give a new identity to its country in the field of electric vehicles.
Hybrid Vehicle Manufacturers will Also Get Relief
The Indonesian Industry Minister has urged the country’s hybrid vehicle manufacturers to register their brands. According to the government, manufacturers who meet local requirements will also be given benefits under this scheme.
BYD Expands in the Indonesian Market
Earlier, in 2023, BYD launched three electric models in Indonesia – Dolphin, Seal, and ATTO3 (Yuan Plus). In April 2023, the location in Indonesia was also decided for BYD’s electric vehicle factory, which plans to start production by 2026.
This new policy of Indonesia will give a big boost to electric vehicle manufacturers and the market of electric vehicles in the country will grow rapidly. This step will be helpful in promoting environmentally friendly vehicles and strengthening the country’s economy.
Also Read: BYD to Begin EV Production in Brazil by 2025, Creating 20,000 Jobs by 2026
