Progressive car tax to be applied nationwide<\/p>\n
JAKARTA (JP): The government will apply the progressive car
\ntaxation system nationwide in a bid to boost regional
\nadministrations' revenues and curb consumerism, a senior official
\nsaid yesterday.<\/p>\n
Director for Regional Revenues Development of the Home Affairs
\nMinistry Rusmana Ardiwinata said that the central government has
\nrequested local administrations to prepare the technical
\nguidelines for the implementation.<\/p>\n
The central government does not set the time frame for the
\nnationwide implementation of the home affairs ministerial decree
\non the taxation system issued in 1993, Rusmana said.<\/p>\n
\"The implementation will depend very much on the capability of
\neach regional administration,\" he said. \"The central government
\nalways encourages local administrations to boost their revenues.\"<\/p>\n
So far, seven provinces have applied the progressive taxation
\nsystem, namely East Java, East Kalimantan, Bali, Irian Jaya, West
\nSumatra, North Sumatra, and Jakarta.<\/p>\n
But only in Jakarta, where the number of motorized vehicles
\ngrows by about 14 percent annually, has the enforcement of the
\nministerial decree received high publication and responses from
\nthe public.<\/p>\n
In Jakarta, the technical guidelines were issued last week and
\nthe regulation formally took effect on April 1, amid criticism
\nthat the ruling has many loopholes.<\/p>\n
The implementation of the progressive taxation system,
\nespecially in Jakarta, has won the support of the Indonesian
\nConsumers Agency. But the agency urges the government to improve
\nthe quality of public transportation.<\/p>\n
The regulation sets the range of the additional tax rate
\npayment to between 20 and 60 percent. It, for example, requires
\nowners to pay 120 percent of the old car tax rate for a second
\ncar and rises to 140 percent for the third and 160 percent for
\nthe fourth and subsequent cars.<\/p>\n
The regulation, approved by the Jakarta city council last
\nJuly, is designed to increase city revenue and to slow the growth
\nin the number of private cars by promoting the use of public
\nbuses instead.<\/p>\n
The government is hopeful that the policy will help ease the
\nnotorious traffic congestions and air pollution in major cities
\nlike Jakarta, Surabaya and Medan.<\/p>\n
\"The policy will also, hopefully, curb consumerism among
\nwealthy people who like spending their money on cars,\" Rusmana
\ntold journalists.<\/p>\n
The new regulation applies to privately-owned cars only and
\nnot on those owned by companies.(29)<\/p>",
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