Unsoed Expert: Motor Vehicle Tax Policy Should Be Implemented Gradually
Purwokerto (ANTARA) - An expert in public policy from the University of Jenderal Soedirman (Unsoed) Purwokerto, Prof. Slamet Rosyadi, believes that the motor vehicle tax (PKB) policy should be implemented gradually to avoid causing unrest among the public.
“The increase in the motor vehicle tax does have a background, one of which is the decrease in transfers from the central government to the regions, which has an impact on the fiscal capacity of the regions. However, its implementation requires caution,” he said in Purwokerto, Banyumas Regency, Central Java, Tuesday.
According to him, policies implemented without adequate socialisation have the potential to shock the public, especially if the amount of tax that must be paid increases significantly compared to the previous year.
He assessed that the economic condition of the people in Central Java is still not fully recovered after the COVID-19 pandemic, so the increase in the tax burden can narrow household spending.
Therefore, he appreciates the steps taken by the Central Java Provincial Government in providing discounts on the PKB, 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) Unsoed.
In addition, he emphasised that the increase in the motor vehicle tax should be followed by improvements in public services, especially road infrastructure, which is still damaged in several areas.
Thus, he said, the public will more easily accept the policy if there is a clear reciprocal benefit, such as road repairs.
“So there are direct benefits that the public feels,” he affirmed.
Regarding the claim that the amount of the PKB in Central Java is relatively lower compared to other provinces, he said that this should be supported by transparent data to avoid causing polemics in the public sphere.
Furthermore, he suggested that local governments should not rely on tax policies as an instant solution to cover budget deficits.
“The government needs to look for other sources of income outside of taxes, for example, by optimising regional assets so that they can generate income. Increasing taxes should be the last option and done gradually,” he said.
He said that the implementation of fiscal policies that are too drastic risks triggering public resistance, especially in areas where economic growth is still lagging behind other provinces such as West Java and East Java.
“Therefore, caution is needed in taking policies so that the goal of increasing regional income is still achieved without causing unrest in the community,” said Prof. Slamet.