Give BBM Tax Relaxation For Jakarta Residents, Pramono: Inflation Control

Jakarta Governor Pramono Anung (Diah Ayu/VOI)

JAKARTA - DKI Jakarta Governor Pramono Anung explained the reason why the DKI Provincial Government has provided relaxation in the form of reducing the motor vehicle fuel tax (PBBKB) or fuel tax for vehicles in Jakarta.

Pramono revealed that this incentive was given to residents because the DKI Provincial Government is trying to keep inflation or price increases more under control.

"Why is this being done? Because we want to control inflation not to rise high because the Jakarta government is one of the governments that seriously controls inflation," said Pramono at Bidara Cina, East Jakarta, Monday, July 28.

Moreover, in the middle of this year, Pramono saw that the realization of regional income from the tax sector was almost in line with the target. So, it doesn't matter if tax breaks are given to residents.

"Because Jakarta's tax revenue is better, we provide relief. We will convey the term of time," he said.

This incentive was determined through Governor's Decree Number 542 of 2025 concerning the Reduction of Motor Vehicle Fuel Taxes. This decision comes into effect from July 22, 2025.

In this decision, there are three tax reduction schemes provided, namely a reduction of 50 percent for private vehicle users, then a reduction of 50 percent for public vehicle users.

Then, 80 percent reduction in vehicle fuels used supports the main defense and security system tools, including tanks, armored vehicles, tactical vehicles, aircraft, as well as ambulances and hospital ships.

For information, the rules for imposing fuel taxes in Jakarta from the law have been passed down in Regional Regulation Number 1 of 2024 concerning Regional Taxes and Levy.

Tax objects in PBBKB or fuel tax are the delivery of motor vehicle fuel from providers such as gas stations or fuel producers to consumers aka vehicle users.

Based on Regional Regulation Number 1 of 2024, the fuel tax rate is 10 percent. Specifically, public transportation can be set at 50 percent lower than the PBB rate for private vehicles.