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Jakarta:“The tariff will probably be implemented in September,” Jakarta Provincial Government Financial Assistant Sukri Bey told Tempo yesterday (29/6). This planned new policy, according to Sukri, will be applied in order to reduce the burden on the 2008 Revised Regional Budget Revision 2008, which has increased due to the 20 percent rise in salaries for civil servants.

Iwan Setiawandi, Head of the Jakarta Regional Tax Revenue Office, said that the amount of the new tariff would be in line with vehicles’ sale value, brand and type.
This is different with the previous regulation, which referred to the 18/1997 Regulation on Regional Tax and Retribution.

It is stated that vehicle taxes are determined based on the vehicles’ type and machine capacity (cc). Therefore, it is possibly that cars of different brand and type but with the same engine capacity will have different tax tariffs.

Iwan added that the tax tariff would only be divided into two types: 1.5 percent for private vehicles and one percent for public transportation. He went on to say that the tax change was in accordance with the 22/2008 Home Affairs Minister Regulation on Vehicle Tax Basic Calculation. Therefore, this regulation will be applied throughout Indonesia. “However, each region will determine when the new tariff is to be implemented,” he said.

Dani Anwar, Deputy Chairman of the Jakarta Regional House of Representatives (DPRD), said he strongly opposed the plan. He said his reason was that, “The residents have just felt the effect of the fuel price increases.”

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