Mon, 07 Jul 2008
Palembang, South Sumatra (ANTARA News) - Vice President Jusuf Kalla said that the government was studying a possibility of restricting the growth in the number of vehicles in an effort to save on energy and reduce subsidy.

"There are several options and we are considering two options namely raising fuel oil prices or reducing the number of vehicles," the vice president said here on Sunday.

When he addressed the opening of the Indonesian Young Entrepreneurs Association (HIPMI)`s national dialog on "Indonesia`s Food Resilience and Energy," the vice president said vehicle production at present increased 46 percent.

Therefore, he said, the government was thinking how to offset the growth in the number of motor vehicles in the country.

Kalla also mentioned the possibility of taking the option of raising vehicle taxes, an option which was also often taken by many countries.

He said that almost all countries in the world imposed high taxes on motor vehicles. The vice president reminded however that the right to set the tax rates were in the hands of the regional governments.

"The right to impose taxes on motor vehicles are in the hands of regional governments, especially for privately-owned vehicles, not for public vehicles," he said.

He said that at present the government provided Rp5,000 per liter of subsidy for a motor vehicle so that if in one day a motor vehicle consumed 20 liters, the government subsidized Rp100,000.



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