The Increase In Fuel Taxes Is Expected To Encourage A Green Economy

JAKARTA - Executive Director of the Pratama-Kreston Tax Research Institute (TRI) Prianto Budi Saptono explained that the Motor Vehicle Tax (PKB) is one of the taxes managed by the provincial government based on the HKPD Law.

According to Prianto, PKB and fuel can be determined differently through the determination of the weight coefficient. The weight coefficient is one of the basic components of the imposition of PKB.

"The determination of the weight refers to the Minister of Home Affairs for Motorized Vehicles (KB) only after consideration from the Minister of Finance. Meanwhile, in addition to the new KB, the basis for imposition of PKB (including the determination of its weights) is under the authority of the Governor through the issuance of PerGub," he explained to VOI, Tuesday, February 6, 2024.

Prianto conveyed that any tax policy must be based on a rational consideration. One of them is the acceleration of the vehicle transition to encourage green economy related to air pollution as a result of the use of fossil fuels.

Prianto hopes that the PKB policy for KB with fuel can change people's behavior so that they leave KB with fossil fuel fuel and switch to KB electricity.

For information, the basis for imposing PKB is the product between the selling value of Motor Vehicles (KB) and certain weights. This particular weight reflects relatively the level of road damage or environmental pollution as a result of the use of KB. Meanwhile, the basis for the imposition of PKB specifically for KB in water is based on the selling value of Motorized Vehicles.

The selling value of Motorized Vehicles refers to the general market price set based on the public market price in the first week of December of the previous tax year. The price of the general market is the average price obtained from various accurate data sources.