The government says the hefty vehicle administration fee increases will help improve public services provided by the police.
The increases of between 100 percent and 300 percent are applied for several types of documents required for vehicle ownership, such as the issuance and extension of vehicle ownership documents (BPKB) and vehicle registration document (STNK).
About 92 percent of the fees collected will be used by the National Police to improve public services, said the Finance Ministry’s director general of budget, Askolani, in a press briefing on Friday.
National Police spokesman Insp. Gen. Boy Rafli Amar said costs of public service had increased in the past seven years, so the fee adjustment was inevitable to ensure better services.
The government is aiming for a 2.04 percent increase to Rp 250 trillion in non-tax revenue in the 2017 state budget, from Rp 245 trillion targeted last year.
As of Dec. 31 last year, the collection of non-tax revenue exceeded the target at 107 percent due to oil and gas lifting that was above assumption and the increase in state-owned enterprises’ dividends.
Meanwhile, the Supreme Audit Agency (BPK) found in its audit report that there were legal weakness in fee collection in the police institution, therefore the fee collection should be implemented more transparently. (bbn)
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