The DKI Provincial Government Complains That The 0 Percent Electric Vehicle Tax Incentive Makes Regional Revenue Lost IDR 3 Trillion

UNSPLASH/CHUTTERSNAP ILLUSTRATION

Head of the DKI Jakarta Regional Revenue Agency (Bapenda) Lusiana Herawati said the central government's policy of incentives for electric vehicle taxes had a significant impact on reducing regional income.

Currently, the Motor Vehicle Transfer Fee (BBNKB) and Motor Vehicle Tax (PKB) for electric vehicles are still set at 0 percent until the end of 2025.

Regarding the transfer fee tax for electric vehicles, which now costs 0 percent, and also PKB for electric vehicles, the tariff is also 0 percent. This is until the end of 2025, because the tariff set by the central government through Law Number 1 of 2022 is 0 percent," said Lusiana, Tuesday, October 21.

According to him, the potential for regional income from the two electric vehicle tax sectors should be quite large. However, the implementation of 0 percent incentives has made DKI tax revenues significantly decreased.

Actually, from the PKB and BBNKB taxes, it is extraordinary that our income should be. (From the incentive of 0 percent of electric vehicle tax), our revenue (regional) decreases by around Rp. 3 trillion," he said.

Therefore, the DKI Provincial Government is coordinating with the Ministry of Finance to review the policy. He considered that the recent surge in sales of electric vehicles should be a consideration so that tax incentives are not allowed to drag on.

"If it can be reviewed, it is related to the central policy for PKB taxes and electric vehicle BBNKB. Because until now sales of electric vehicles have soared, very high. So if this is allowed, then regional income, not only DKI, the regions will be eroded from there," said Lusi.

Lusi said the elimination of electric vehicle tax incentives could help increase regional income. Given, the central government has now decided to cut transfer funds to the regions (TKD) in budgeting for 2026.

The DKI Provincial Government has actually planned the Jakarta APBD next year with a nominal jumbo amount of IDR 95.35 trillion. However, recently the Ministry of Finance cut the transfer funds to the regions (TKD) by IDR 15 trillion to only IDR 11 trillion.

This figure decreased by 59.47 percent compared to 2025 with a value of IDR 27.5 trillion. Thus, next year's projected DKI APBD will have to be reduced to IDR 81.28 trillion.

"So, our income depends on what policy we will implement in 2026," he added.