Tuesday, December 28, 2010

Multiple Vehicles Ownership Tax

The condition of traffic in the city of Jakarta and vicinity is getting worse every day.

To solve this problem, the city government have limited the numbers of cars allowed to enter certain roads  during rush hours, built Toll-roads circling the city's inner and outer parts, built the Busway system, and asked schools to start half an hour earlier (from 7 am to 6.30 am). Unfortunately, those efforts  failed, and the city's traffic condition is getting worse.

Due to this fact, the city government plan to impose additional Tax to citizens who have more than one vehicle Please find below an article that I have quoted from AFP.

In this connection, I felt that the best solution would be to build a mass rapid transportation system i.e. by resuming the construction of the Mono-Rail system that was stopped many years ago start building subway system, and build many more roads.

JAKARTA — Drivers in Jakarta are to face a rising tax bill for each vehicle they own from January in a bid to ease worsening traffic jams in the Indonesian capital, a spokesman said Tuesday.

"The Jakarta city administration will impose higher tax for owners of multiple motorised vehicles starting from January 3, 2011," Jakarta administration spokesman Cucu Ahmad Kurnia said.

"We hope the higher taxes will reduce traffic congestion as the number of vehicle users in Jakarta is already high. Hopefully, more people will use public transportation," he said.

The number of vehicles in Jakarta and its environs has almost tripled in the last decade to more than 9.5 million according to the Indonesian Transport Society.

Under the new rules, the present 1.5 percent tax level remains for the first car and motorcycle a person owns. This rises to 2.0 percent for their second, 2.5 percent for their third and 4.0 percent for every subsequent vehicle.

Authorities have been looking for ways to address problems in greater Jakarta, which has around 20 million inhabitants, including shifting the capital to a less populated area in the archipelago.

Experts predict the city, which has an ageing bus network and no underground train system, will reach total gridlock by 2014, with every main road and backstreet clogged with barely moving cars.

Drivers will see their costs rise further in March when the subsidy for petrol is cut, leaving a litre (a quarter of a gallon) of higher grade fuel costing around 9,000 rupiah (one dollar), up from the current price of 4,500 rupiah.


ReBorn said...

how can people would switch to public transport if the public transport until now has not been addressed well by the government?

Indonesian Rhapsody said...

Yeah the main problem is the worst public transportation infrastructure.

H. Nizam said...

You are right the government should provide good public transportation first before thinking about other alternatives like burdening people with additional tax.

@Indonesian Rhapsody,
That's the problem the government should think and solve first of all.

Teras Info said...

if such a solution, in my opinion bukanlha a good thing, why? because we can see, there would be a lot of motorists are protesting because their taxes raised. In addition, our country is also now being subverted by the mafia tax ...

Wisata Murah said...

gambaran buram transportasi kita,seburam prilaku para pengurusnya.ibu kota dipindah kemanapun.klo mental dari pejabat pengurus transportasinya tidak direformasi nggih samimawon.

H. Nizam said...

@Teras Info,
I agree that the tax rise would bring protests from vehicle owners, but considering that they do not have alternative, they will keep on driving their vehicles. And Jakarta would still have the worst traffic jam.

@Wisata Murah,
Jalan keluar yang terbaik adalah menyediakan transportasi masal yang cukup dan baik.

colson said...

Though I've not the ghost of an idea how to solve traffic congestion I'm pretty sure a tax hike will not scare away many cars. Let's hope,it may, perhaps, perhaps, provide funds with which the administration may be able to reach structural improvements.

I wonder what can be done by drastically restricting cars in the London-city style or by city planning. Till now the most prestigious buildings seems to be located in the centre - it would be better to build the news ones at the outskirts.

Rubiyanto Sutrisno said...

Perlu upaya yang serius untuk memikirkan hal ini ....

H. Nizam said...

About multiple vehicle tax to be use for building roads, I think that was the plan. But right now people are allergic to misuse of tax money by govt officials.
Actually the construction of mono rail had already began before it was stopped some years ago. Lots of money have been wasted.
Actually relocation of business centers to the outskirt of Jakarta has already began 15 years ago.

Anda benar, harus dipikirman secara matang tidak bisa hanya kasus per kasus saja.

Kiwi Riverman's Blogesphere said...

They could increase charges on individual vehicles. We have motor vehicle registration here in NZ. There are also road taxes which are supposed to be spent on roads.Public transport is also a way to take pressure off the road system. We have dedicated bus lanes in some of city CBD's as well.


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H. Nizam said...

Although increasing vehicle tax would effect people's intention to buy vehicles, however it would not stop them buying. So without new longer and wider roads, public transportation the traffic jam would get worst.

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