Central Java in Uproar Over Vehicle Tax Increase, West Java Governor Confirms No Similar Move

The Governor of West Java, Dedi Mulyadi, has decided not to increase vehicle taxes in the province, despite the central government’s cuts to regional transfers. This decision was made to maintain public purchasing power. “We in West Java will not increase vehicle taxes; we choose to maintain the existing rates,” said Dedi Mulyadi at the Gedung Sate building in Bandung, Thursday, February 26, 2026.

Dedi emphasized that since the beginning of his term a year ago, he has consistently maintained stable tax rates. For him, maintaining affordable taxes is more effective in increasing public compliance than raising rates and burdening the community.

“Since I took office until last January, I have not increased taxes. It is better to have more people paying taxes (high participation) than to increase taxes and have fewer people paying,” said Dedi.

In addition to rejecting tax increases, the West Java Provincial Government is implementing progressive policies by providing incentives for the public transportation and logistics sectors.

Dedi revealed that in the near future, taxes for vehicles with yellow license plates and freight vehicles will be reduced. “For yellow license plates and freight vehicles, taxes will be reduced,” he said.

Dedi Mulyadi is optimistic that by maintaining low rates, the regional cash flow from the vehicle tax sector in West Java will remain stable, driven by a wider base of taxpayers.

Central Java in Uproar Over Tax Increase

This policy in West Java is a positive anomaly when compared to the province of Central Java. In comparison, the Central Java Provincial Government has implemented a new vehicle tax and vehicle ownership transfer fee (PKB and BBNKB) since January 5, 2025, which has led to high public pressure.

The situation in Central Java has even forced the Regional Secretary of Central Java, Sumarno, together with the local DPRD (Regional People’s Representative Council), to design a tax discount relaxation of five percent until the end of 2026 to help reduce the burden on the community.

The Deputy Chairman of the Central Java Provincial DPRD, Mohammad Saleh, urged the Governor and Vice Governor Ahmad Luthfi-Taj Yasin to be creative in finding alternative sources of significant regional revenue, other than those derived from vehicle taxes.

“In the future, creativity is needed,” said Saleh in Semarang, Wednesday.