City Council against new gasoline tax

JAKARTA (JP): City Council is apparently against the idea of introducing gasoline and diesel fuel tax.

The chairman of Commission C for revenue, Helmy AR Syihab, said over the weekend vehicle owners are already burdened by various taxes and fees. "They must pay motorized vehicle tax, fees for vehicle ownership documents and progressive car taxation," Syihab said.

The head of the city environment bureau, Aboejoewono Aboeprayitno, said Thursday that his office had officially proposed to the governor the imposition of Rp 2 per liter in tax on gasoline and diesel fuel purchases.

Aboejoewono said that the proposal was an effort to curb air pollution in the city. The higher prices of gasoline and diesel fuel are expected to encourage the use of compressed natural gas (CNG), which does not pollute the air.

Records indicate that 67.1 percent of air pollution in Jakarta is caused by the transportation sector.

Syihab said, however, that if the city lacks funds to curb air pollution, it can just propose a bigger budget.

Another councilor, H.M Rodja, shared his opinion, arguing that the people should not be blamed for using the pollution- causing fuels. "The gasoline and diesel fuel are supplied by the government. Vehicle owners have no alternative. If they want to change to CNG now, the number of CNG pumps is still very small," said Rodja of Commission D for development affairs.

There are 13 CNG pumps in Greater Jakarta, while more than 2.5 million vehicles operate in Jakarta alone. The number of gas stations which provide gasoline and diesel fuel is currently 153.

Meanwhile, Deputy Governor of Economic and Development Affairs Tb. M. Rais said if the tax proposal was approved by both the governor and the City Council, the administration would still find it difficult to impose the new tax.

"Coordination with related ministries must be made before the policy could be implemented," he said.

Twenty new CNG pumps will be installed in the city soon. (26/yns)