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Jakarta Post

Jakarta tax agency hunts luxury car tax evaders

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, December 6, 2019   /   07:42 pm
Jakarta tax agency hunts luxury car tax evaders Illustration of tax payment. (Shutterstock/VectorHot)

The Jakarta Tax and Levy Agency (BPRD) and the Jakarta Police are conducting joint raids on the homes of luxury car owners as part of the city administration’s efforts to collect tax arrears on over a thousand luxury cars registered in Jakarta.

At one home in a housing estate on Jl. Praja Raya, South Jakarta, the joint team found on Tuesday four high-end cars  — a Ferrari, a Land Rover, a Toyota Vellfire and a Jaguar  — for which the owner had not fulfilled their tax obligation.

South Jakarta vehicle taxes (PKB) and vehicle ownership transfer fees (BBNKB) management unit head Khairil Anwar said Rp 300 million (US$21,300) in tax arrears was owed for the cars.

“The owner actually has five luxury vehicles, but he has paid his taxes for the other Ferrari” Khairil said in a statement.

The owner was not present during the time of the raid, with a private security guard providing information to show that the billing file had been received by the owner and was currently being processed.

Khairil stated that based on his office’s records, tax arrears were owed on 1,513 luxury four-wheeled vehicles in Jakarta.

“At present, we are hunting the owners of around 500 vehicles who have not paid their vehicle taxes. This means we are chasing up around Rp 20 billion of the Rp 44 billion in tax arrears. We will keep looking for, approaching and appealing to the owners,” Khairil said.

Meanwhile, BPRD head Faisal Syafruddin said that  in Jakarta taxes were owed on 1,104 two and four-wheeled luxury vehicles that had sale values of more than Rp 1 billion each.

In addition, Faisal said the registration documents for 336 of these luxury vehicles had been blocked as the owners had allegedly used other people’s identities to purchase the vehicles.

To unblock the registration, the owners must change transfer the BBNKB license into their own names.

“We have found that they have borrowed someone else’s ID card [to purchase the vehicles]. To unblock the registration, they needed to take care of their BBNKB. They did not come, which means they were lying,” he said.

The 336 luxury vehicles include 106 Mercedes Benzes, 42 Porsches and 33 BMWs.

Meanwhile, the luxury vehicles that are yet to be blocked include 280 Mercedes Benzes, 86 Porsches and 83 BMWs.

During the door-to-door raids, the authorities also place a sticker on vehicles on which tax is owed.

“To remove the sticker is a violation of the rules. We can then process the case legally,” said Faisal. (syk)