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In a bid to achieve its vehicle tax collection target, the Jakarta Taxation and Revenue Agency has announced a new tax policy that will allow vehicle owners to avoid stiff penalties.
In cooperation with the Jakarta Police, the tax agency announced on Thursday that it would write off fines for late payments until Oct. 28.
“Vehicle owners should not worry about paying big for their long-overdue vehicle tax arrears,” police spokesman Sr. Comr. Rikwanto said.
He said the tax agency was also offering Jakartans a 25 percent discount on their vehicle taxes, starting from since Oct. 10 and continuing for the next few weeks.
“By issuing this policy, we are aiming to increase tax revenues. Some people are afraid to pay their taxes due to the fines associated with their long overdue tax debts,” Rikwanto said.
“However, the discount is only valid for taxpayers who haven’t paid their taxes in the last five years,” he added.
He added that the fees for vehicle title transfers would be waived for the next few weeks.
Arif, a 26-year-old motorcyclist, said that the policy was effective in encouraging people to pay their vehicle taxes.
“I haven’t paid my vehicle tax that was around Rp 100,000 [US$10.43] to Rp 200,000 for the last two years. I didn’t know for sure how much the fine would be, but this policy certainly encourages me to immediately pay my taxes,” he said.
Arif, who works in a private company, said that he did not pay his taxes because he often forgot to take the time to go to the tax agency.
“It would also be easier if the tax agency provided a mobile payment post to help taxpayers in paying their taxes,” he said.
Onggok, 29, said that the policy eased the financial burdens of a vehicle title transfer.
“I bought my Vespa motorcycle secondhand and I haven’t gotten the chance to pay the fee for the vehicle title transfer. Therefore, I think this policy is very beneficial for people who bought their vehicles secondhand and want to have their names on the documents,” said the employee of a general contractor company.
The policy, released in July 2012, was stipulated in Jakarta Governor Regulation No. 77/2012 on decreasing the vehicle taxes, reducing title transfer fees and scrapping the tax penalty.
The city administration announced in July that regional tax revenues reached Rp 15.22 trillion ($1.57 million) last year, 60 percent of which came from vehicle-related taxes. (nad)