If taxes are removed, more IRs buy motorcycles



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Jakarta – The Party for Prosperous Justice (PKS) has promised to fight for the bill on the elimination of taxes on motorcycles and the imposition of a driver's license (SIM) for life he won the elections of 2019.

However, it is actually considered that this is exploding motorcycle sales in Indonesia.

"Once taxes are eliminated, people are more and more motivated to buy motorized vehicles," said Rusli Abdullah, a researcher at the Institute for Economic Development and Finance (Indiaf), during a discussion at the office of PKS DPP. Even though the motorcycle tax has not been eliminated, the sale of two wheels in the country continues to increase. According to data from the Indonesian Association of Motorcycle Industry (AISI), the number of motorcycle sales wholesale (factory distribution to dealers) in October 2018 registered 610 322 units. This number increased compared to September 2018, which totaled 557,684 units.

Of the 610,322 motorcycles sold this month, Honda manufacturers still dominate the country's two-wheel-drive market with sales of 456,582 units.

After Yamaha in second place with a distribution number of 138,012 units. Then there was successively Suzuki with 10 489 units sold, 5 212 Kawasaki units and finally 27 units of TVS.

If accumulated, sales of motorcycles in the country between January and October 2018 recorded a total of 5,332,564 units. Until the end of 2018, AISI is targeting motorcycle sales in the domestic market between 6.2 and 6.3 million units.

The PKS said that the elimination of the taxation of motorcycles and the establishment of a SIM card for life were only intended to ease the burden on the community. (dry / dry)


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