JAKARTA - The DKI Provincial Government issued Governor Regulations number 89 and 90 of 2019 to reduce the number of motor vehicle tax arrears and the transfer fee for motor vehicle names.
This regulation provides a principal reduction of the cost of transferring the name of a motor vehicle by 50 percent, and provides a reduction in principal for local taxes and relief or elimination of sanctions on regional tax receivables.
The regulation was issued because based on tax data as of November 12, PKB proceeds were still under the target of Rp.8.8 trillion. Meanwhile, this year's BBNKB is targeted at around Rp. 5.6 trillion.
"Today, an average of 84 percent has been achieved. So we are less than 16 percent. The deficiency is approximately Rp. 2.1 trillion," said Head of the Regional Tax and Retribution Agency (BPRD) Faisal Syafruddin in Jakarta, Tuesday, November 12, 2019. .
The number of tax arrears is dominated by two-wheeled vehicles in West and East Jakarta. Meanwhile, for the most nominal contributors came from four-wheeled vehicles, namely luxury cars.
To optimize the Governor Regulation, door to door efforts will be used to meet these targets. They will also coordinate the police on this issue.
On the same occasion, Head of STNK Section of the Traffic Directorate of Polda Metro Jaya, Kompol Arif Fazlurrahman, said that in an effort to reduce the number of tax arrears, the police held Operation Zebra in several areas of Jakarta for two weeks. As a result, hundreds of vehicles have been prosecuted for tax arrears.
"During the 14 days of Operation Zebra, we took action against 800 illegal and non-extended vehicle registration violations," said Arif.
Increase in BBNKB costs
Not long ago, the DKI Provincial Government issued Regional Regulation (Perda) Number 6 of 2019 concerning the increase in BBNKB rates by 2.5 percent from 10 percent previously, so that it became 12.5 percent.
The increase in tariffs is a measure to equalize motor vehicle tax rates in the Jakarta and Bali areas so that there is no jealousy between motorized vehicle owners.
"So that there is no distortion of jealousy between vehicle owners in Java and Bali. For example (Jakarta) is still 10 percent, in Tangerang it is 12.5 percent, later Tangerang people will buy their cars in Jakarta," said Faisal.
Another reason for increasing tax rates is reducing congestion which has become a scourge in Jakarta. "One (objective of the BBNKB tax increase) is to reduce congestion in DKI Jakarta," he said
The increase in BBNKB rates is contained in the Regional Regulation (Perda) of the DKI Provincial Government Number 6 of 2019 revising Regional Regulation Number 9 of 2010 concerning BBNKB Paragraph (1) Article 7, namely:
Tariff for Transfer of Motor Vehicle Title Fee is determined as follows:
a. The first submission of 12.5 percent (twelve point five percent); and
b. The second submission and so on is 1 percent (one percent).
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