Many Taxpayers Not Aware Progressive Tax Was In Effect

Through first week of April 2011 many vehicle owners as tax payers in greater Jakarta were not aware that progressive tax for motor vehicles was in effect. Some of the tax subjects of KBM or employees assigned to pay KBM tax must report or go back to their bosses to report the obligation to pay additional fine of 1.5 % times sales value for ownership of third vehicle amounting to 2.5% for the fourth vehicle etc. an office employee showed to Business News the original receipt of license number tax of greater Jakarta amounting to Rp. 1.045.000 to which additional tax of Rp. 250.000 was added. The governor of greater Jakarta, Fauzi Bowo stated that the technical application of progressive tax was exercised based on name and address stated on the ID card (KTP). By this way the e can be no double ownership or abuse of address because the governor of greater jakarata had implemented master ID number based single identity number (SIN). The application of progressive tax in greater Jakarta is among others aimed at controlling growth of motor vehicle in greater Jakarta. The progressive tax is implemented on the basis of motorcycle and motor car to motor car or in reverse. Head of tax dept of greater Jakarta Iwan Setiawandi stated tat progressive tax implemented foe two wheel motorcycle was put in effect as per January 3, 2011. It is estimate that increase of PKB tax 2011 could reach Rp. 153,0 billion to Rp 210.0 billion per year if target of PKB attainment in 2011 be equalized with target of PKB of 2010 i.e. Rp. 3.06 trillion. Of that PKB attainment, ten percent is allocated for restoration of infra structure and mass transportation.