Motor Vehicle Tax Collection Deemed Unfair

Solo, Kompas.com — Motor vehicle tax (PKB) collection is deemed unfair because it only involves citizens who comply with tax payment obligations, whilst those who fail to pay PKB tend to be neglected. This issue has been highlighted by several policies adopted by the government.

Previously in Central Java, approximately 4.7 million motor vehicles were reported to be in tax arrears throughout 2025, out of a total of 16 million registered motor vehicles. This figure has resulted in a loss of potential regional revenue of Rp 2.1 trillion.

Tigor Nainggolan, Deputy Chair of the Civic Forum (FAKTA) INDONESIA and Transportation Policy Observer, stated that regional officials must pursue delinquent taxpayers fairly.

Tigor reminded policymakers that when making decisions, they must involve the public. The government needs to listen to feedback and aspirations from the community.

“Sometimes the reason they don’t pay tax isn’t that they don’t want to, but they’re reluctant due to complicated bureaucracy. For example, when paying annual PKB, they must use the original owner’s identity card, and when they need to transfer the vehicle, the process becomes cumbersome,” Tigor said.

“Approaches like that might be more appealing to the public, especially those who currently don’t comply with tax payments. This way, regional revenue can be optimised and be more equitable,” Tigor added.

Tigor emphasised that the number of motor vehicle tax defaulters is not insignificant. They are currently being left alone.

By paying attention to defaulters, fairness in tax collection becomes more equitable and avoids movements that damage all parties, such as the tax payment boycott movement in Central Java.

In addition to criticising government policy, Tigor also reminded the public that failure to pay PKB can result in legal consequences for citizens.

Not only does it harm the government, but citizens whose vehicles are seized due to legal issues will also suffer losses. Therefore, the issue of fair tax collection must be implemented equitably.