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)