REPUBLIKA.CO.ID, JAKARTA - Government will increase tax on luxury car 75 percent to 125 percent. The increase aims to reduced the imported cars to supress the trade deficit. 

"Ministry of Finance regulation has been prepared. Tax of luxury car will rise from 75 percent to 125 percent," Minister of Industry, MS Hidayat, said recently.

The tax will implemented on imported luxury cars with fuel capacity above 3,000 CC. Hidayat said government could not ban import of luxury cars, so they created disincentive policies to reduce them.

Director General of High Technology Leading Industry in Ministry of Industry, Budi Darmadi said increase of luxury car tax was also intended to encourage domestica products. Indonesia has prepared some measures to make those luxury cars to be manufactured in Indonesia.

Increase of luxury car tax depends on engine capacity based on some criterias. In 2012, total imports of luxury cars with engine capacity above 3,000 CC reached 7,000 units. 

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