Residents complain about vehicle tax increase

Residents complain about vehicle tax increase

Ahmad Junaidi, The Jakarta Post, Jakarta

Residents complained on Saturday about the city administration's
decision to increase vehicle tax by fifty percent, which will
burden people who have suffered from price increases in daily
necessities and electricity and telephone bills.

"The administration should think more about the public. It
shouldn't simply think about getting as much money as possible
from them," Emmy S. Margaretha of Kembangan, West Jakarta, said.

Emmy, who owns a Kijang van and Corolla sedan, said she would
consider selling her sedan as she could probably no longer afford
to pay the tax on it.

She said she paid Rp 1.2 million in tax for the 1996 sedan
several months ago.

"I will probably sell the sedan. It's too hard for me to pay
the tax," Emmy, who is also an activist from PDI Perjuangan (the
Indonesian Democratic Party of Struggle), said.

Another resident, Nana from East Jakarta, complained that the
administration had no consideration for ordinary people, who are
currently suffering from the increase in the price of daily
needs.

"But what can we do. We must still pay the tax despite our
complaints," Nana said, adding that she paid around Rp 500,000 in
tax this year on her Starlet sedan.

The administration announced on Friday, via a gubernatorial
decree, that it would increase the tax from 1 percent to 1.5
percent of vehicle value.

The city has decided that vehicle value is 80 percent of the
market price. For example, for a van with a market price of Rp
100 million, the owner should pay 1.5 percent times Rp 80
million, or Rp 1.2 million.

The decree, which will be effective on Monday, aimed to bring
the tax into line with similar taxes applied across the country.

Jakarta has 3.8 million vehicles, including motorcycles.

The city aims to reap Rp 2.5 trillion from the vehicle tax
this year, which would significantly contribute to the Rp 9.7
trillion city budget.

City councillor Abdul Azis Matnur of the Justice Party
regretted the administration had issued the decree without
consulting beforehand with the council.

"The administration should have consulted with the council
before issuing the decree, like other decrees that affect the
public," Aziz said on Saturday.

He demanded the administration delay the application of the
decree until it was discussed with the council and elements of
public, such as the Indonesian Consumers Foundation (YLKI).

YLKI also demanded on Friday the administration delay
implementation of the decree, pending discussion with the public,
as with other decrees, such as for water and public
transportation tariffs.