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View all search resultsAhok proposes higher vehicle taxes to ease traffic
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Vehicles stuck in traffic on Jl. MH Thamrin in Central Jakarta on Monday. (Antara/Aprilio Akbar)
J
akarta Governor Basuki "Ahok" Tjahaja Purnama has recommended an increase in the vehicle tax to 15 percent of a vehicle’s price to reduce the number of cars in the capital.
"We have proposed the increase to the City Council, so that it revises the [2015] regulation on the vehicle tax,” Ahok said at City Hall on Thursday.
According to City Bylaw No. 2/2015 on Vehicle Tax, an owner's first vehicle is taxed at 2 percent of the sale value and each additional vehicle is charged an additional 0.5 percent. Therefore, a tax of 2.5 is due for the second vehicle and 3 percent for the third. For larger fleets, a tax of 10 percent is payable on any vehicle after the 16th.
The proposed increase in the vehicle tax was part of city administration efforts to tackle congestion by discouraging people from purchasing new vehicles, particularly private cars, in the hope that people would shift to public transportation, Ahok said.
“The tax increase may mitigate traffic congestion in the city,” Ahok said. (bbn)
