Jakarta Offers Tax Deduction for Vehicles, Lands until Year's End

TEMPO.CO, Jakarta - Jakarta provincial administration has established a tax deduction program for vehicle tax (PKB) and the land and building tax (PBB). The program will last from September 16 until December 31, 2019.

“During this program, taxpayers can enjoy tax and administrative sanction relief before [we hold] law enforcement and massive tax collection in 2020,” said Faisal Syafruddin, the head of Jakarta Tax and Retribution Agency (BPRD), Monday, September 16.

Tax for the first, second, and so forth vehicle ownership transfer fee (BBN-KB) is slashed to 50 percent. Taxpayers who have not paid their PKB since 2012 are also subjected to 50 percent, while unpaid tax from 2013-2016 is eligible for a 25 percent cut.

Also, the city administration provides a discount at 25 percent for taxpayers who owe the land and building tax (PBB) arrears from 2013 until 2016.

The program service is opened in the PKB and BBN-KB office unit across five regions of Jakarta, while for PBB will be automatically provided during the payment process.

Faisal then appealed to taxpayers to actively join the regional tax deduction program to avoid administrative sanctions in taxation. “We have all data of taxpayers, so we give them time to fulfill their duties before we focus on holding law enforcement on regional taxation,” he said.

Previously, Faisal declared that Jakarta suffered losses up to trillions rupiah due to tax arrears. For PKB alone, the figure reached Rp2.4 trillion.

MARVELA