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Jakarta Post
The Jakarta Post
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Almost half of luxury car owners evading tax

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Fri, August 11, 2017 | 07:04 pm
Almost half of luxury car owners evading tax Spacious: The driver’s side of a BMW 330i M Sport. (JP/R.Berto Wedhatama)

Some 1,700 luxury cars in Jakarta are not taxed, a city official has claimed.

Jakarta Tax Agency head Edi Sumantri said that the potential income from luxury car tax could be substantial as a single such car has a tax value of between Rp 100 million (US$ 7,486) and Rp 500 million. However, many owners have not paid their taxes.

“There are about 1,700 luxury car owners that have not paid their taxes yet. The average tax they have to pay is more than Rp 100 million,” Edi said, adding that there were currently about 4,000 luxury cars registered in the capital.

Edi said that officials would go to the tax evader’s home addresses to collect the taxes, in a bid to achieve this year’s target of tax revenue from vehicles of Rp 12.9 trillion. Currently the administration has only been able to collect 60 percent of the target.

The city administration would cooperate with the Jakarta Police traffic unit to collect the taxes, he added.

“We will visit the tax evaders’ homes, accompanied by personnel from the Jakarta Police traffic unit,” Edi told journalists at City Hall on Friday, as quoted by kompas.com.

Edi explained that car owners had an obligation to pay taxes for their vehicles every year.

Separately, City Secretary Saefullah said he hoped that the move would increase the city’s revenue in 2017.

“I hope this move can boost our regional income,” Saefullah said. (vny)

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