New auto prices set by government to affect vehicle taxes
New auto prices set by government to affect vehicle taxes
JAKARTA (JP): The city administration will soon impose higher
taxes on vehicles based on the new auto prices set recently by
the Ministry of Home Affairs, officials said on Tuesday.
City spokesman Muhayat told reporters at the City Hall that
the decision was based on a decree issued by the Ministry of Home
Affairs No. 1/2000 on vehicle base price.
"The administration is only following the decree in imposing
the increased vehicle tax," he said.
The ministerial decree sets a new price list for all new and
used vehicles, depending upon their brand, type and year of
release, Muhayat added.
He did not give details or the date when the decree comes into
effect, but said that the tax for the vehicles, locally called
PKB, and fee for changing vehicle ownership, or BBNKB, would be
higher than before.
A local report said that under the new tariff, the PKB rate
for a 1996 Jeep Land Cruiser VX-R would be set at Rp 3.98 million
(US$538), more than double the current rate of Rp 1.69 million.
A BMW 520i sedan released in 1985 would be set at Rp 757,000
from the current PKB rate of Rp 526,000. A Toyota Kijang Super KF
50 Long released in 1996 would be raised to Rp 510,000 from Rp
374,000.
It also sets a tax coefficient (DPP) that is based on the
pollution level of the vehicle and the possible damage it could
cause due to its load capacity.
According to the decree, the PKB tariff will be calculated by
multiplying the new base price of the vehicle with the DPP, which
has been set between 1.5 and 2.5, and the government-set
percentage of 1.5 percent.
The BBNKB fee will be calculated from the vehicle base price
multiplied by the government-set percentage.
The current system of vehicle taxes are based on Ministerial
Decree No. 16/1999 issued by the same ministry and Gubernatorial
Decree No. 24/1996.
According to a tentative schedule, the new tariff system --
which will be effective nationwide -- should be imposed starting
from April 1.
But Governor Sutiyoso told reporters earlier in the day that
he had not made any decision on the planned hike in PKB and BBNKB
for vehicle owners in Jakarta.
"I haven't received any information on it. I have to check the
details first," he said, while admitting the tax hike would
create a political effect.
Interviewed separately, city councillor Amarullah Asbah of the
Golkar Party said he could understand the planned hike because
the increase was only imposed on the vehicle's market price.
"The tax is still 1.5 percent from the base price multiplied
by the tax coefficient. The amount is changed because the price
has increased," he said.
"The price is always updated following market development," he
said.
Residents were reportedly complaining recently that they had
to pay higher vehicle taxes without any prior notification even
though they only have old cars.
Contacted separately, member of the Indonesian Consumers
Foundation (YLKI) executive board, Tini Hadad said that she still
had no adequate details on the plan.
But she strongly urged the government to adjourn the plan.
"It is not the correct time, because the public are now
dealing with so many hikes. It will be too much," she warned.
Tini reminded that the government is wrong if it considers
that the main target of the hike would be only wealthy people, in
other words those who own vehicles.
"Jakartans, be they poor or rich, are forced to buy cars
because public transportation is so poor. So if the government
intends to impose the policy only on the rich, the tax increase
should only apply for luxurious cars," Tini suggested.
(09/ind/nvn)