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Road Hogs, the Clock is Ticking Down

Bali Legislators Join Call for Crackdown and Seizure of Smuggled Luxury Cars and Motorcycles.

(4/26/2010) News surrounding the ongoing controversy surrounding unregistered and illegal motor cycles has now spread to also encompass luxury sports cars. An article in Radar Bali said the Bali House of Representatives (DPRD-Bali) is seriously concerned about the loss in tax revenues occasioned by the large number of vehicles who have not paid the required import duties and yearly road tax, calling on Bali's chief of police, General Sutisna, to clarify the presence of several Ferraris now on the island that have been imported illegally and have paid no road taxes. A Bali official charged with overseeing tax revenues, Ketut Sudira, told the press that there were many unregistered luxury vehicles in Bali, including Ferraris with police plates DK 18 and DK 6.

Explained Sudira, "as regards the Ferraris, I can confirm that they are not registered in Bali. If they (the Ferraris) have a ‘DK' plates with any number, be it DK 18 or DK 6, I assure you they are illegal and unregistered. When challenged by the press as to how many luxury cars there are in Bali with a value exceeding Rp. 1 billion (US$108,000), Sudira said he could not recall the exact number, claiming he would first need to make an inventory of all the luxury cars in every regency of Bali. "What's clear," he added, " the Ferraris running around the island have not paid the required taxes. As for other (luxury) cars, I would need to count them one by one before giving you a specific number."

Illegal Big Bikes

Sudira also said that it was interesting to note that there are currently around 800 big motorcycles operating in Bali. Ironically, the majority of these vehicles lack formal registrations making it difficult to charge them the appropriate road tax. He said his office is working closely with the police to clean up the administration surrounding big bikes and luxury cars. "Through this cooperation the police have already managed to seize more than ten big bikes lacking any registration paperwork," he said.

According to Radar Bali, there are currently some 8 Ferraris operating in Bali distributed by one car dealer on Jalan Teuku Umar. If Sudira's comments are correct, all these vehicles have escaped paying both import duties and road taxes resulting in billions of rupiahs in lost revenues to the government.

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