Indonesian Political, Business & Finance News

Automobile tax

| Source: WYS

Automobile tax

Some provinces, including DKI Jakarta, are planning to impose
a progressive tax on motorized vehicles to create a sense of
equity and justice. This has drawn different comments from the
public.

The progressive tax will be levied on those who own more than
one car. The question which immediately arises is; what happens
to public vehicles? And to companies or institutions that own
many vehicles? The tax rules that a higher tax is imposed on each
additional car. That, of course, will be a great burden for a
multi-car owner, but the government's rationale is that any
company which is able to buy a number of cars must be affluent,
and so, it is natural that they should pay higher taxes.

This new tax system will hopefully bring about a change in the
way of life of the public. They will think twice before deciding
to buy a second car.

If the government collects more tax however, the public
naturally expects better services in return; an obvious and
logical consequence of the burdensome policy.

-- Suara Karya, Jakarta

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