Reviewed tax on vehicles to be announced Friday<\/p>\n
JAKARTA (JP): The city administration bowed on Tuesday to
\nwidespread demands for a review of vehicle tax increases, saying
\nthe tax on certain vehicles, except those classified as luxury,
\nwould be lowered.<\/p>\n
Without going into details about the changes, Governor
\nSutiyoso said the review would be made in line with the interests
\nof less affluent citizens.<\/p>\n
\"The changes will be announced on Friday,\" Sutiyoso said after
\ndistributing donations to people living in Pulogadung, East
\nJakarta.<\/p>\n
The city administration increased the vehicle tax based on
\ngubernatorial decree No. 33\/2001 on the vehicle registration tax
\nand vehicle change of ownership tax.<\/p>\n
City bylaw No. 3\/1998 on the vehicle registration tax has set
\na tax rate of 1.5 percent of the vehicle price.<\/p>\n
Although the city administration said the increase was set
\nbetween 0.34 percent and 22 percent, in reality it extended to
\nbetween 80 percent for motorcycles and 100 percent for cars.<\/p>\n
Deden Supriadi from the City Revenue Agency said the 100
\npercent increase was a result of two hikes in the 1999\/2000 and
\n2000 budget years.<\/p>\n
Sutiyoso said on Tuesday that car owners who had already paid
\ntheir vehicle taxes could not be refunded any overpayment, but
\nthe excess would instead be deducted from next year's tax
\npayment.<\/p>\n
\"There would be a tax restitution. It would difficult if they
\n(car owners) wanted their money to be returned right now,\" the
\ngovernor said.<\/p>\n
The city administration has came under widespread criticism
\nbecause of its decision to increase the tax.<\/p>\n
The Indonesian Consumers Foundation (YLKI) suggested that the
\ncity administration was trying to meet the city revenue target
\nwithout having to work any harder. The city authorities, he
\nrecommended, could instead boost profits from its firms to
\ncollect more revenue.<\/p>\n
Following mounting public pressure, Sutiyoso hinted last week
\nthat he would lower taxes for several types of car which are
\ncommonly owned by the general public.<\/p>\n
However, he said that the administration would, in turn,
\nincrease the tax on luxury cars, because their taxable prices
\nwere considered lower than market prices.<\/p>\n
Sutiyoso described the list of vehicle prices stated in a
\nministerial decree No. 10\/2001 on vehicle registration fees and
\nthe change of ownership taxes issued by the Ministry of Home
\nAffairs and Regional Autonomy as unfair.<\/p>\n
He questioned the price of a Ferrari sedan, which was set by
\nthe ministry at Rp 1.7 billion (US$154,545) despite the market
\nprice of the Italian luxury sports car reaching Rp 3.3 billion.<\/p>\n
The city administration has set a target of Rp 2 billion in
\nrevenue to be raised through the vehicle tax and change of
\nownership tax this year.<\/p>\n
There are 1.9 million vehicles in the capital, including
\n924,077 wagons and 364,417 sedans. (jun)<\/p>",
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