West Java Governor Refrains from Raising Vehicle Taxes to Maintain Purchasing Power

Bandung (ANTARA) - The Governor of West Java, Dedi Mulyadi, has decided not to increase vehicle taxes in his region, even though the central government has reduced Transfers to the Region (TKD), in order to maintain the purchasing power of the community.

“We in West Java are not increasing (vehicle taxes); we are choosing to maintain the existing rates,” said Dedi Mulyadi at the Gedung Sate in Bandung, Thursday.

Dedi affirmed that since the beginning of his term a year ago, he has consistently maintained stable tax rates. For him, maintaining affordable taxes is far more effective in increasing public compliance than raising rates, which would burden the community.

“I have not raised taxes since I took office until last January; you can ask. It is better to have more people paying (high participation) than to raise taxes but have fewer people paying,” said Dedi.

Dedi revealed that in the near future, taxes for yellow-plated vehicles and freight transport will actually decrease.

“For yellow plates, freight transport will experience a decrease,” he said.

Dedi Mulyadi is optimistic that by maintaining low rates, the region’s cash flow from the vehicle tax sector in West Java will remain stable, driven by a wider volume of taxpayers.

The situation in Central Java has even forced the Regional Secretary of Central Java, Sumarno, together with the local DPRD, to design a relaxation plan with a five percent tax discount to dampen public unrest.