New tax on motor vehicles

The government has submitted a draft bill on regional taxes and fees to the House of Representatives.

An additional tax is being proposed for motor vehicle fuel. The amount is 5 percent of the sale price of fuel (gasoline and diesel). The rest would be divided as follows: 10 percent for the province, 90 percent for the mayoralty and regency.

Motor vehicle owners already have various taxes to pay, both to the central government and to the regional administration, on motor vehicle ownership, change of title, VAT on fuel, excise for gasoline, test fees and VAT on purchase of the motor vehicle.

Thus, a motor vehicle is already taxed for its ownership, acquisition, fuel consumption and administration. Now, an additional tax is being proposed.

In my opinion this is too much to be borne by motor vehicle owners.

The government always takes the easy way out to levy taxes on one and the same object. It is noteworthy that the 1993-1998 State Ideology prohibits double taxation on the same tax object.

I suggest the House of Representatives reject the draft bill on the additional fuel tax.

Ironically, while a new tax will be imposed on the people, PT Timor Putra Nasional has been given free tax facilities amounting to trillions of rupiah. This will clearly cause financial losses to the state and the people.

This tax facility is discriminative and violates tax laws.

SUHARSONO HADIKUSUMO

Jakarta