Legislator calls on government to get tough on car smuggling<\/p>\n
Fadli, Batam<\/p>\n
An outspoken legislator of the Batam Council has called on the
\ncentral government to take action against the unchecked smuggling
\nof used cars from Singapore and Malaysia, which has contributed
\nto traffic congestion on the islet.<\/p>\n
Deputy chairman of the Batam municipal council Ahars Sulaiman
\nsaid National Police chief Gen. Da'i Bachtiar, finance minister
\nBudiono and Attorney General AR Rachman should take measures
\nagainst subordinates using smuggled cars on Batam.<\/p>\n
He pointed out that more than 3,000 used cars illegally
\nimported from neighboring countries Singapore and Malaysia were
\nbeing driven on Batam without fear of persecution.<\/p>\n
\"Aside from the illegal cars, government officials of relevant
\ndepartments are involved in the smuggling and trade of used cars
\nin collusion with local dealers. This is why thousands of
\nsmuggled cars are operating freely,\" he said.<\/p>\n
Private vehicles are one of three commodities subject to
\nvalue-added tax (VAT) under Government Regulation No. 3\/2003. The
\nother two are liquor and cigarettes.<\/p>\n
Used cars from Singapore and Malaysia have flooded Riau,
\nincluding Batam and Tanjung Pinang, over the last five years
\nbecause of their relatively cheap price and good condition. An
\nautomatic 1997 Honda Civic is offered for between Rp 15 million
\nand Rp 20 million. In Jakarta, a 1997 Civic sells for Rp 80
\nmillion.<\/p>\n
Ahars said it looked unlikely that Batam Mayor Nyat Kadir
\nwould stop the smuggling, because in addition to law enforcers
\nplaying a role in the smuggling, the administration had planned
\nto legalize more than 400 smuggled cars on streets of Batam.<\/p>\n
He said the council would oppose the administration's plan to
\nlegalize the illegal cars.<\/p>\n
\"The main problem is not that owners of the illegal cars don't
\npay taxes to the local administration, but that the island has a
\nlimited road capacity. Traffic congestion has become a daily
\noccurrence on Batam's main roads because the number of cars,
\ntrucks and motorcycles far exceed their capacity. Traffic will
\nonly get worse unless the inflow of cars is regulated,\" he said.<\/p>\n
Ahar suggested the smuggled cars be seized and turned into
\nscrap, or transported to other, underpopulated islands in the
\nprovince.<\/p>\n
Amhar Ismail, secretary of the Joint Task Force Against
\nSmuggled Cars (TPKB), confirmed that the administration was
\nseeking approval from the legislative council for its plan to
\nlegalize all smuggled cars recorded by the TPKB.<\/p>\n
\"With the legalization, owners (of the smuggled cars) will be
\nobliged to pay import tax and excise of Rp 5 million (US$555) and
\nthe annual vehicle tax,\" he said. He agreed with Ahar that the
\nsmuggling of used cars had become widespread because of
\nincreasing demand and the low price of the vehicles.<\/p>\n
The planned legalization of the illegal cars is based on
\nMinisterial Decree No. 584\/2003, which stipulates that any VAT-
\napplicable commodity that was imported before the issuance of the
\ngovernment regulation on VAT are still required to fulfill
\nappropriate tax and excise regulations.<\/p>\n
Amhar conceded that the joint task force comprising local
\npolice, Batam Prosecutors' Office and the industry and trade
\noffice had found it difficult to keep illegal cars off the
\nstreets, because the car owners had the backing of fraudulent
\npolice and military personnel.<\/p>\n
\"The task force has confiscated numerous illegal cars and
\nhanded over them to local police for further processing, but the
\ncars are back on the streets only a few days later, because the
\nowners have paid off local police,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/legislator-calls-on-government-to-get-tough-on-car-smuggling-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}