Vehicle tax in Jakarta would experience a progressive increase from 1
ehicle tax in Jakarta would experience a progressive increase from 1.5 to 2 percent starting January 2015, Jakarta Tax Agency head Iwan Setiawandi said on Saturday
Under the progressive tax mechanism, the tax for the first vehicle owned by any individual will be increased from 1.5 to 2 percent, while the second vehicle from 2 to 4 percent and the third vehicle from 2.5 to 10 percent.
The progressive tax mechanism is based on revised City Bylaw No. 8/2010 on progressive tax for vehicles, which was endorsed on July 23, 2014.
'The public has already been informed of the increase," he said as quoted by Antara news agency.
"We expect the increase to help meet the regional revenue [PAD] target of between Rp 34 trillion and Rp 36 trillion."
Iwan added the tax increase was also expected to reduce traffic congestion in Jakarta.
"One of the major ways to handle traffic congestion is by limiting vehicle ownership through taxation instruments," he said.
"Residents with more than one motorcycle or car will have to pay a progressive tax." (dyl/nvn)
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