Good News For West Java Residents, Provincial Government Rolls Out Motor Vehicle Tax Fines Reduction Program

Head of the West Java Provincial Revenue Agency, Hening Widyatmoko. (Photo: Antara)

JAKARTA - The West Java Provincial Government (Jabar) has rolled out a tax penalty exemption and relief program for taxpayers who own motorized vehicles. A program called Triple Untung Plus will be rolled out on August 1, 2021 and this program aims to boost motor vehicle tax revenues which declined in the first quarter. and two in 2021. "This is one solution to boost regional income from motor vehicle taxes. Some efforts to increase revenue from this sector are less than optimal, such as door to door PKB payments and vehicle tax incentives by the central government," said the Head of the Java Province Regional Revenue Agency. Barat Hening Widyatmoko in Bandung, Thursday. According to him, there are three advantages for taxpayers from this program: first, free motor vehicle tax penalties. Fines are waived for residents who are late in paying taxes, but the exemption from fines does not apply to exemption from paying for new motorbikes, changing forms, unregistered auction/ex-dump ar, as well as replacing the engine. Second, free of principal and fines BBNKB II (Bea Transfer of Motor Vehicle Names). This relief can be used by residents who want to carry out the process of transferring the name of a second motorized vehicle and so on in the West Java region.

Third, free of arrears principal progressive rates. This waiver is specifically for residents who want to apply for BBNKB II (Bea Transfer of Motorized Vehicle Names) for second ownership and so on. Then if you still have arrears, the rate is only 1.75 percent. Hening said that the Triple Untung Plus program last year was also rolled out and proved to be helping taxpayers who were more or less affected by the COVID-19 pandemic. Efforts to collect vehicle taxes are recognized as not optimal because people's purchasing power has decreased due to the pandemic. "People's purchasing power has decreased due to the pandemic, which also has an impact on PKB payments. Many of them have decreased income and have even been laid off," said Hening. He explained the backbone Provincial tax is a motor vehicle tax. Therefore, the decline in income from PKB has a major effect on regional income from the tax sector. PKB income for the third and fourth quarters of 2020 was Rp.4,060,249,125,192 (Rp4.06 trillion), while the PKB income for the first and second quarters of 2021 was Rp.3,749,897,646,800 (Rp3.7 trillion). The difference between quarters III and IV/2020 with quarters I and II/2021 is IDR 310,351,468,392 (IDR 310 billion) or 7.64 percent. Meanwhile, according to Hening, the difference in income also has a little effect on the budget deficit of the West Java Regional Budget. The Triple Profit program which will be rolled out again in August 2021 will last until December 2021. "Indeed, the period is five months, but it is hoped that it can optimally attract revenue," he said. Meanwhile, Head of the Regional Financial and Asset Management Agency (BPKAD) Nanin Hayani Adam said there was a budget deficit of Rp. 5 trillion in West Java's APBD caused by budget predictions that were not achieved. "From the target of Rp. 41.4 trillion, it is predicted that only Rp. 35.8 trillion is achieved. The solution to cover the deficit is to reduce spending in 2021," said Hayani. This is suspected to be due to income from the vehicle tax sector. West Java motorized vehicle (PKB) in the first and second quarters of 2021 decreased compared to the third and fourth quarters of 2020.