Good News From East Java Provincial Government, Motor Vehicle Taxes Get Discounts On Ramadan

An illustration of a resident showing proof of payment of motor vehicle tax online from a home in Panarukan, Situbondo, East Java. ANTARA/Seno

JAKARTA - The East Java Provincial Government has provided motor vehicle tax discounts for taxpayers who own motorbikes and cars in the framework of Ramadan 1442 Hijri.

"The 'Ramadan Discount' tax incentive provides relief for the community amid the unfinished atmosphere of the COVID-19 pandemic," said East Java Governor Khofifah Indar Parawansa, as reported by Antara, Tuesday, April 20.

Tax incentives are given from April 20, 2021, to June 24, 2021, in the form of a reduction in the motor vehicle tax principal (PKB) of 15 percent for two and three-wheeled wheels, and 5 percent for four or more wheels.

Taxpayers in East Java also have the opportunity to exempt administrative sanctions for PKB payments and transfer fees for motorized vehicles (BBNKB).

"Last year, tax incentives were provided in the form of Corona Discounts. The enthusiasm of taxpayers is quite large, and that means many residents have been helped by giving the discount," she said.

In connection with the enthusiasm of the community, Khofifah hopes that she will be able to encourage passionate tax payments because this tax will be a very important resource for realizing the development and welfare of the people of East Java.

However, based on the records of the East Java Regional Income Agency (Bapenda) during the first quarter of 2021 there is still 18.09 percent of taxpayers who do not comply or have not paid obligations.

"For the people of East Java from January to March yesterday, they have not paid taxes, please pay this in this Ramadan. God willing, in addition to blessings, we will also receive discounts and fines," said the first female governor in East Java.

Not only past due taxpayers, but this Ramadan Discount also applies to taxpayers who are not due until the end of December 2021.

"So, taxpayers who want to pay taxes early are also entitled to enjoy this Ramadan discount," she said.

"Discounts and exemption from motor vehicle sanctions, this fasting month Governor Khofifah also granted PKB principal exemptions for battery-based electric vehicles.

This policy is also complementary to the central government's policy of setting transfer fee incentives (BBN) for electric vehicles.

"Many incentives have been launched. "Our assumption is that taxpayers who will take advantage of this discount reach 2,999,046 tax objects who have not paid or will pay before maturity," said the General Chairman of PP Muslimat NU.

With this amount, she said, the local provincial government would disburse Rp. 107.67 billion tax incentives for East Java residents.

At the end of her explanation, Governor Khofifah will also give a special prize at the end of the fasting month for taxpayers who are obedient to pay their obligations.

The prize is an Umrah savings worth Rp. 30 million which will be given to 15 lucky taxpayers through a lottery.

"This year we are enlarging the Umrah prize again from last year's 20 recipients to 30 recipients. The other 15 recipients will be drawn at the momentum of the East Java Provincial Government's anniversary. The value of the savings was increased from Rp. 25 million to Rp. 30 million," said Khofifah.