Consumer group hails progressive car taxation
Consumer group hails progressive car taxation
JAKARTA (JP): The Indonesian Consumer Protection Foundation
has hailed the city administration's decision to implement a
progressive car taxation system as of next month.
"It will be fairer because the rich will have to pay more for
their cars than the poor," Zaim Said, an executive of the
foundation, said yesterday.
However, Zaim urged city administration to set up a special
system to prevent people from breaking the law because they
always try to find loopholes in the regulation.
"It is a good thing that the regulation stipulates cars be
based on the names and addresses of owners. But you have to know
that many people, especially the rich, have many houses," Zaim
said.
He added that the authorities, city administration or police
should think about this possibility and form a special procedure
to prevent this from happening.
Head of City Revenue Office Wahab Rachmatsjah said on Thursday
that the Jakarta municipality regulation on the progressive car
taxation system has been approve by the Minister of Home Affairs
and will be enforced beginning next month.
The regulation, approved by city council last July, is
designed to increase the city's revenue and to slow the growth in
the number of private cars, by promoting the use of public buses
instead.
The regulation requires motorists to pay 120 percent of the
effective car tax rate for a second car. The tax rises to 140
percent for the third car, 160 percent for the fourth, 180
percent for the fifth and 200 percent for the sixth and
subsequent cars.
Zaim also urged the city administration to use the new
regulation as a way to not only increase its revenue but to solve
the traffic and air pollution problem as well.
"As an effort to solve the nagging traffic problems, city
administration should improve the quality of public
transportation," Zaim said. Because, he added, if the city
administration fails to provide better public transportation,
people will feel that the tax will only be a burden.
Zaim said people are forced to use private cars even though
they are not rich because they need a safe and comfortable means
of transportation.
Zulaikha, a woman who owns three cars, said that basically she
agreed with the new tax regulation but city administration should
consider the reason why a family needs more than one car.
"My husband and I are working and we both need a car. My
children also need one," she said.
Zulaikha said she does not feel comfortable boarding public
buses because most of them are dirty.
"This is exactly what I mean. People will start using public
transportation as soon as the government provides better public
transportation," Zaim said. (yns)