Bali's administrators are considering introducing a progressive tax that will affect people owning more than one motor vehicle.
Bisnis Bali, quoting Gusti Made Supartha, the chief of income resources for the provincial government of Bali, said: "I estimate 20-30% of vehicle owners will be impacted by the progressive tax." Supartha said the introduction of a progressive vehicle tax was provided under law No. 28 of 2009, regarding tax and provincial retributions.
However, another provision of the 2009 law prevents the introduction of such a new tax before 2011.
Supartha said the provincial authorities only serve as the executor of policies made in the nation's capital. Moreover, he warned that the taxes applied for motor vehicles in Bali cannot be out of step with motor vehicle taxes charged in other provinces of Indonesia. To do so would only perpetuate the number of non-Bali license plates traveling Bali's roads and highways.
Supartha estimates that the number of vehicles in Bali totals 1.6 million units. If 20-30% of the vehicles fall under the proposed new progressive tax, 400,000 vehicle would be affected.
Bali's motor vehicle tax collections during the first three months of 2010 increased 25% over the same period in 2009, amounting to 27.9% of the taxes targeted for collection from Bali's motorists for the entire fiscal year of 2010.
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