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.