Tax hike coming for Jakarta’s car owners

Tax hike coming for Jakarta’s car owners
The Jakarta Post, Jakarta | Wed, 12/01/2010 1:30 PM | Headlines

The Jakarta administration says it will impose taxes on the city’s car owners starting on Jan. 1.

The tax would range from 1 percent to 4 percent of a vehicle’s price, depending on the number of vehicles owned, according to Jakarta Tax Agency regulatory head Arif Susilo.

“The City Council has approved the draft bylaw and it is ready to be endorsed,” Arif said on Wednesday.

The tax was aimed at easing Jakarta’s traffic congestion and would discourage residents from owning more than one car, he said.

Arif said the tax would be levied on all eligible vehicles, regardless of age.

“Cheap cars and old cars are also subject to this ruling,” he said as quoted by tempointeraktif.com news portal.
Under the draft bylaw, a person who owned one car would pay 1 percent of the vehicle’s price, a second car at 2 percent, a third car at 2.5 percent and four or more cars at 4 percent.

According to the Jakarta administration, 5 million cars were now operating in the city, Arif said.