Unsoed Expert: Gradual Implementation of Motor Vehicle Tax Policy to Prevent Public Discontent

REPUBLIKA.CO.ID, PURWOKERTO - An expert in public policy from the University of Jenderal Soedirman (Unsoed) in Purwokerto, Prof. Slamet Rosyadi, believes that the motor vehicle tax (PKB) policy should be implemented gradually. The aim is to prevent the policy from causing unrest among the public.

“The increase in the tax rate has its reasons, one of which is the decrease in transfers from the central government to the regions, which impacts the fiscal capacity of the regions. However, its implementation requires caution,” he said in Purwokerto, Banyumas Regency, Central Java, on Tuesday.

According to him, policies implemented without adequate socialisation have the potential to shock the public, especially if the amount of tax to be paid increases significantly compared to the previous year. He believes that the economic condition of the people in Central Java is not yet fully recovered after the COVID-19 pandemic, so an increase in the tax burden could narrow household spending.

Therefore, he appreciates the step taken by the Central Java Provincial Government in providing a discount on the PKB rate, although the amount of the discount still needs to be increased to truly ease the burden on taxpayers. “If it’s only 5 percent, it’s too small, maybe 15 percent or more to provide greater relief to the public,” said the Dean of the Faculty of Social and Political Sciences (FISIP) at Unsoed.

In addition, he emphasised that the increase in the tax rate should be followed by improvements in public services, especially road infrastructure, which is still damaged in several areas. Thus, he said, the public will be more willing to accept the policy if there is a clear benefit, such as road repairs.

“So there are direct benefits that the public can feel,” he affirmed.