City considering tax on gasoline, diesel fuel

City considering tax on gasoline, diesel fuel

JAKARTA (JP): In an effort to curb the use of air polluting
fuels, the city administration plans to impose a new tax on
gasoline and diesel fuels bought by consumers.

The head of the city environment bureau, Aboejoewono
Aboeprajitno, said yesterday that his office has officially
submitted its tax proposal to the governor. If approved, the
proposal will result in a provincial regulation that will add Rp
2 to every liter purchased of gasoline and diesel fuel. The
regulation would not affect corporate users of gas and diesel.

"The city administration is still studying the proposal and
whether or not it is feasible," he said, adding that the proposal
is based on environmental Law No. 4/1982.

The aim of the proposal, he said, is to motivate Jakartans to
use compressed natural gas (CNG), a cleaner fuel.

"By not imposing a tax on CNG, the administration expects
people to choose CNG over gasoline and diesel fuels," he said.

According to latest data provided by the administration, 67.1
percent of air pollution in Jakarta is caused by the
transportation sector, 18.9 percent by industry, 11.12 percent by
private residences and 3.88 percent by garbage.

Records at the City Traffic and Land Trasportation Control
Agency show that last year only 700 of the city's 2.16 million
vehicles used CNG. All 700 were taxis.

The administration has made efforts to encourage people to use
CNG and CNG pump stations have been built.

Gas station owners in the city have also been asked to replace
some of their pumps with CNG pumps. It has also given a permit to
a private company to build 20 new CNG pump stations by the end of
this year.

Currently, there are 153 gas stations in Greater Jakarta, 13
of which have CNG pumps. (yns)