Sutiyoso yields on tax, some may escape hike<\/p>\n
JAKARTA (JP): Governor Sutiyoso finally gave in to public
\npressure to revise its controversial decision to increase vehicle
\nregistration fees, allowing owners of certain cars to pay less.<\/p>\n
\"I have agreed that the fees for moderate cars will be
\nreviewed, but not for luxury cars,\" Sutiyoso said after joining
\nthe Friday prayer at Al-Makmur mosque in Tanah Abang, Central
\nJakarta.<\/p>\n
He said he would review the registration fees and tax on a
\nvehicle's change of ownership made before 1990, by lowering the
\ncars' prices, which are used as the basic calculation for the
\ntax.<\/p>\n
\"But we will not review the (increase) tax for luxury cars
\nsince the prices decided by the central government are lower than
\nthe market price,\" Sutiyoso said.<\/p>\n
For example, he said the price of a Ferrari on the central
\ngovernment list was only Rp 1.7 billion (US$154,545) while the
\nmarket price is Rp 3.3 billion.<\/p>\n
\"So it's not fair if the owner of the Ferrari pays only Rp 25
\nmillion for the registration fee, although they were able to buy
\nthe car for Rp 3.3 billion,\" he said.<\/p>\n
He also agreed to charge higher taxes on vehicles older than
\n20 years, for their part in contributing to air pollution.<\/p>\n
\"It has become a major concern in the world, so older cars
\nwhich contribute to air pollution should pay higher taxes,\" he
\nsaid.<\/p>\n
As of last month, vehicle registration fees increased by 100
\npercent.<\/p>\n
The city has 1.9 million vehicles, including 924,077
\nmotorcycles and 364,417 cars.<\/p>\n
Sutiyoso, however, did not say whether registration fees and
\nthe tax on a change of ownership for motorcycles, which has
\nincreased by 80 percent, would also be lowered.<\/p>\n
The Ministry of Home Affairs and Regional Autonomy issued
\nDecree No. 10\/2001 on vehicle registration fees and the change of
\nownership taxes, which includes a list of vehicle prices
\napplicable across the country.<\/p>\n
But depending on the situation in the locality, a governor can
\nlower or increase the set prices as long as they are not 80
\npercent higher or lower than the market price.<\/p>\n
Based on the new vehicle tax scheme, car owners have to pay a
\ntax rate of 1.5 percent times the vehicle's price as calculated
\nby the government.<\/p>\n
The rate was stated in City Bylaw No. 3\/1998 on vehicle and
\nchange of vehicle ownership taxes.<\/p>\n
Sutiyoso rejected the possibility that he would revoke
\nGubernatorial Decree No. 33\/2001 on the vehicle tax calculation
\nbase, saying it was according to law.<\/p>\n
Meanwhile, city administrative assistant Makmun Amin promised
\nthat the city administration would continue to monitor the
\npayment of vehicle registration fees.<\/p>\n
\"Reviews to lower the fees and the tax will probably be
\nconducted in June,\" Makmun said after meeting with City Council
\nCommission C for city revenue on Friday.<\/p>\n
After hearing the explanation given by executive officials in
\nthe meeting, city councillors, who earlier demanded the city
\nadministration to postpone the vehicle registration fee increase,
\nsaid they could understand the decision.<\/p>\n
But the councillors regretted the lack of public notice about
\nthe increase, which should have been conducted by the city's
\nrevenue agency.<\/p>\n
Commission C chairman Amarullah Asbah of the Golkar Party said
\ncouncil supported the city administration to apply the
\ndecision, by asking owners of luxury cars to pay more while those
\nwith newer, more moderate cars pay less. (jun)<\/p>",
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