Indonesia lowers VAT on electric vehicles from 11% to 1%

Indonesia has lowered its value-add tax on battery-based electric vehicle sales to 1 percent from 11 percent to encourage the adoption of EVs, a government ministry said on Monday, amid efforts to attract investment into domestic production,

The incentive came into effect this month and will remain in place until the end of the year, the Coordinating Ministry of Maritime and Investment Affairs said in a statement.

A VAT cut was also applied to some electric buses, it said.