{
    "success": true,
    "data": {
        "id": 1665357,
        "msgid": "central-java-secretary-says-ev-tax-incentives-and-reduction-in-smoker-numbers-erode-regional-revenue-1775688640",
        "date": "2026-04-09 05:27:00",
        "title": "Central Java Secretary Says EV Tax Incentives and Reduction in Smoker Numbers Erode Regional Revenue",
        "author": "Karta Raharja Ucu",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Regulation",
        "summary": "Sumarno, the Secretary of Central Java Province, has warned that central government policies, including tax incentives for electric vehicles and efforts to reduce smoking rates, are eroding local original revenue (PAD), which relies heavily on vehicle-related taxes and tobacco excise. He highlighted that 80% of the province's PAD comes from consumption-based taxes like motor vehicle taxes and fuel taxes, which are directly impacted by the shift to electric vehicles and declining cigarette consumption. Sumarno raised these concerns during a visit by Commission II of the Indonesian House of Representatives, urging discussions on the Regional Financial Balance Law to protect local fiscal capacity.",
        "content": "<p>Semarang \u2013 The Secretary of Central Java Province (Jateng), Sumarno,\nassesses that several central government policies have the potential to\nerode regional original revenue (PAD). In the context of Central Java,\nhe mentioned, among others, the tax incentives provided by the\ngovernment for electric vehicles and efforts by the government to reduce\nthe national smoking rate.<\/p>\n<p>Sumarno revealed that 80 percent of the Central Java Provincial\nGovernment\u2019s PAD comes from taxes or is consumption-based. These include\nMotor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Fee\n(BBNKB), Motor Vehicle Fuel Tax (PBBKB), and cigarette tax. Sumarno\nstated that these tax components are correlated with district\/city\ngovernments.<\/p>\n<p>\u201cThe PKB and BBNKB have options, while the fuel tax and cigarette tax\ninvolve revenue sharing funds,\u201d said Sumarno on Sunday (5\/4\/2026).<\/p>\n<p>According to Sumarno, these taxes are a mainstay for local\ngovernments in collecting PAD. However, he assesses that there are\nseveral central government policies that have the potential to erode PAD\nfor local governments, especially in Central Java.<\/p>\n<p>Sumarno alluded to how the central government is actively encouraging\nthe public to use public transportation or switch to electric vehicles.\n\u201cElectric vehicles have zero percent PKB and BBNKB,\u201d he said.<\/p>\n<p>He added that the shift to electric vehicles will certainly reduce\nfuel purchases. \u201cThe central policy is to encourage reducing fuel\nconsumption, even shifting to electric vehicles. Of course, if we are\nasked to accelerate (PAD), it will instead decline, because it also\ncontradicts the central government\u2019s policy,\u201d said Sumarno.<\/p>\n<p>In the health sector, Sumarno alluded to the government\u2019s efforts to\nreduce the number of active smokers. \u201cThe cigarette tax is\nconceptualised to reduce it, and at some point, the Ministry of Health\nwants to ban it. So how do we want to accelerate PAD when this\ncontradicts the central policy,\u201d he said.<\/p>\n<p>Sumarno admitted that he had conveyed this during Commission II of\nthe DPR RI\u2019s working visit to the Central Java Governor\u2019s Office on\nWednesday (1\/4\/2026). \u201cI conveyed it to Commission II so that it can be\ndiscussed at the centre because this is about the Regional Financial\nBalance Law. Thus, the local fiscal capacity will certainly not be\ndisrupted,\u201d he said, while hoping for a solution from the centre\nregarding the issue.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/central-java-secretary-says-ev-tax-incentives-and-reduction-in-smoker-numbers-erode-regional-revenue-1775688640",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}