One of the policies used in increasing national economic growth, the Minister of Finance has issued Regulation of the Minister of Finance Number 20/PMK.010/21 concerning Sales Tax on Luxury Goods on Delivery of Taxable Goods Classified as Luxury in the Form of Certain Motorized Vehicles Covered by the Government for Fiscal Year 2021 This PMK Number 20/PMK.010/21 is the government's support to increase people's purchasing power in the motor vehicle industry sector which is beneficial in improving national economic growth. In order to support the government for the automotive industry sector and the continuity of sales of the motor vehicle industry as a result of the Covid-19 pandemic, it is deemed necessary to provide luxury goods tax incentives on taxable goods belonging to certain luxury motor vehicles provided by the government. The type of research used in this paper is normative research, namely conducting a search for library data using secondary data. In connection with the discussion, the government has prepared incentives to reduce PPnBM for motor vehicles in the vehicle segment under 1,500 cc, namely for the sedan and 4x2 categories. This is done because the government wants to increase the growth of the automotive industry by purchasing local motor vehicles above 70%. Judging from the potential for state revenue, the relaxation of PPnBM will increase production and demand for new cars, in addition, relaxation of PPnBM can reduce the selling price of cars, thereby increasing demand for new cars with engine criteria below 1,500 cc and increasing car production. In terms of tax revenue, with the relaxation of PPnBM, the state will lose its tax, but will be compensated by an increase in demand and production. With growing demand and increased production compared to the previous year, the calculation will be more positive than potential losses.