Impose progressive taxes on private transport: Experts<\/p>\n
Damar Harsanto, The Jakarta Post, Jakarta<\/p>\n
Transportation experts on Thursday welcomed the city's plan to
\nimpose progressive taxes on cars and motorcycles and urged the
\nadministration to use the funds collected from higher taxes to
\nexpedite the development of a public transportation system in the
\ncapital.<\/p>\n
"The administration must ensure that taxes collected from car
\nowners be used to expedite the improvement of public
\ntransportation ... Otherwise, such a policy would fail to attain
\nthe desired objectives of encouraging people to switch from
\nprivate cars to public transportation," chairman of the Indonesia
\nTransportation Society Bambang Susantono told The Jakarta Post.<\/p>\n
Bambang said that the basic idea of progressive taxes was to
\nmake people pay the "true cost of driving."<\/p>\n
"People using private cars must pay more than people who use
\npublic transportation since motorists take up more road space for
\ntheir cars, contribute more to air pollution and consume
\nsubsidized fuel," he said.<\/p>\n
Similarly, City Transportation Council (DTK) chairman Soetanto
\nSoehodho said the funds collected from the taxes should be
\nmanaged transparently so that the public could monitor whether or
\nnot the funds were being used for improving public
\ntransportation.<\/p>\n
"An immediate improvement in public transportation is vital as
\nan alternative to private car owners who are willing to use
\npublic transportation and leave their cars at home," said the
\ndirector of Center for Transportation Studies with the University
\nof Indonesia.<\/p>\n
Many transportation experts have said that the ideal means of
\ntransportation to solve the entire traffic headache in the
\ncapital is a Mass Rapid Transit system. However, this would
\nrequire enormous investment. The MRT project was first floated in
\nthe 1970s and later during the administration of governor Surjadi
\nSoedirdja.<\/p>\n
The project, which would have cost US$800 million for the
\nbasic infrastructure and an additional $300 million to $400
\nmillion for rolling stock, was postponed after the financial
\ncrisis struck the country in 1997.<\/p>\n
City Revenue Agency Agusman Badarudin revealed Wednesday that
\nthe administration was preparing higher vehicular taxes, which
\nwill be imposed on residents or individuals who have more than
\none vehicle, be it a car or motorcycle.<\/p>\n
The policy is a follow-up to an instruction issued by
\nPresident Susilo Bambang Yudhoyono on July 12 on energy
\nconservation.<\/p>\n
"Hopefully, higher taxes imposed will discourage people from
\nusing private cars and therefore reduce fuel consumption in the
\ncapital," he said.<\/p>\n
The taxes would only target private cars and motorcycles and
\nnot the owners of public transportation vehicles.<\/p>\n
City Deputy Governor Fauzi Bowo said the level of tax would be
\nbased on the kind of vehicle -- four-wheeled vehicle or two-
\nwheeled --, brand, engine capacity and vehicle lifespan.<\/p>\n
The taxes will be set at 25 percent of the latest sales value
\nof the particular vehicle (NJKB).<\/p>\n
"We won't wait any longer to start implementing these taxes,"
\nFauzi said.<\/p>",
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"sponsor": "Okusi Associates",
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