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Luxury car tax evaders can’t afford vehicle tax: Official
In two and a half hours, officers found that taxes were not paid for 33 vehicles.
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Luxury cars are parked in a housing complex in Cinere, Depok, West Java, on Aug. 22, 2017. (kompas.com/Nibras Nada Nailufar)
T
he owners of luxury cars in North Jakarta have evaded taxes for their cars because of the high luxury vehicle tax, an official has said.
The head of the North Jakarta and Thousand Islands management unit for vehicle taxes and vehicle ownership transfer fees, Robert L. Tobing, said that the vehicle taxes were high because of a progressive tax rate hike.
“According to them [vehicle owners who have not paid taxes], the progressive tax hike is high. If a car is worth Rp 7 billion, then 10 percent of it, or Rp 700 million, [must be spent] for vehicle ownership fees, while 2 percent of it, or Rp 140 million, must be spent annually. But that’s the risk [of owning a luxury car],” Robert said on Wednesday, as quoted by kompas.com
He said the progressive vehicle tax was introduced to limit the number of cars and questioned why the owners could not pay their taxes despite having luxury cars. He said that, in one case, the owner of three luxury cars could not afford to pay his taxes.
“If someone owns a luxury car, they should be able to pay [taxes]. How come one can afford one but cannot afford the taxes?” Robert said.
He said that agency officers in North Jakarta typically found luxury cars with unpaid taxes in Penjaringan and Kelapa Gading on weekends.
The agency, along with Vehicle Document Registration Center (Samsat), conducted a raid on Wednesday on Jl. Pantai Indah Utara, Penjaringan, and found 33 vehicles with unpaid taxes after two and a half hours. (ami)
