JAKARTA, May 5 (Xinhua) -- Indonesia is considering differentiated tax rates for gasoline-powered and electric vehicles to promote cleaner energy use and reduce reliance on imported fuel, Energy and Mineral Resources Minister Bahlil Lahadalia has said.
"In the future, gasoline-powered vehicles may face different tax treatment compared with electric vehicles, which are cheaper, environmentally friendly, and do not rely on imported fuel," Bahlil said at a recent forum in Jakarta.
The minister said wider EV adoption could ease the government's energy subsidy burden, lower consumer costs, and strengthen national energy security, local media Kompas.com reported Tuesday.
Since April, EVs, including battery-powered cars and motorcycles, have been subject to annual vehicle taxes after a nationwide exemption ended. Under the new framework, regional governments may set EV tax rates and design incentives to encourage adoption.
"All countries are seeking their own formulas to secure energy sustainability," Bahlil said. ■
