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How to Calculate Progressive Motor Vehicle Tax?

How to Calculate Progressive Motor Vehicle Tax?

Understanding progressive tax is not too difficult especially if we have two similar vehicles that are both burdened with taxes that must be paid every year. 

In simple terms, it can be interpreted that the more vehicles you have, the greater the tax that must be paid on each existing vehicle.

What is a motor vehicle progressive tax?

Progressive tax is a tax levy with a greater value along with the increasing number of ownership of taxable goods or objects regulated in accordance with applicable laws.

Progressive vehicle tax has a legal basis based on Law Number 28 of 2009 concerning Regional Taxes and Regional Levies.

The law regulates the ownership of the second vehicle unit and the payment of taxes with the following provisions.

  • The private motor vehicle tax rate for first ownership is at least 1 percent and the highest is 2 percent.
  • The private motor vehicle tax rate on ownership of the second unit and so on can be set progressively at a minimum of 2 percent and a maximum of 10 percent.

With these provisions, we must pay the progressive vehicle tax rate for the second vehicle unit and so on applies to multiples. 

Progressive tax based on what?

This progressive vehicle tax rate is determined based on the number of tax objects, in this case motor vehicles and the price or value of the tax object subject to collection.

The object of the tax is of course paid by the taxpayer under the same name or address.

However, it should also be noted that the imposition of this tax only applies to ownership of the same type of vehicle. Here is an example case to clarify.

Examples of cases related to the imposition of progressive vehicle tax rates

For example, discussing a motorcycle in the name of Tuan Agung whose address is at Jalan Lempuyangan, Jakarta.

Tuan Agung then bought a second motorbike the following year with the same owner’s name and address. 

So it is the second motorbike that is subject to a progressive motorbike tax rate in the amount of between 2 percent to 10 percent based on the amount of Motor Vehicle Tax (PKB) listed on the STNK.

Examples of cases not related to the imposition of progressive vehicle tax rates

Another case example, Tuan Agung has various vehicles with different types. In this case, Mr. Agung has one motorbike, one car, and one truck.

Due to the different types of vehicles, none of Mr. Agung’s vehicles are subject to a progressive vehicle tax rate.

How much is the progressive tax on cars and motorcycles?

Briefly regarding the amount of tax rate imposed on additional ownership of the same vehicle unit, the percentage will increase as the number of vehicles increases. Below we can see the amount of the tariff.

In which areas are progressive vehicle taxes levied?

In addition to the DKI Jakarta Province, progressive vehicle tax rules are also applied in all areas of West Java Province. The following are the rules regarding the determination of progressive vehicle tax .

  • Progressive vehicle tax for DKI Jakarta: DKI Jakarta Provincial Regulation Number 2 of 2015.
  • Progressive vehicle tax for West Java: Regional Regulation of West Java Province Number 13 of 2011.

How to find out if a car or motorbike is subject to a progressive vehicle tax

It’s easy to find out if a car or motorcycle is subject to a progressive vehicle tax or not. The trick, check your STNK on the brown sheet of proof of payment of payment obligations. Then, check the row of numbers under the Machine Number row.

If the row of numbers under the Engine Number row shows 001 (the last three digits), it means that the vehicle is the first vehicle. If the number is 002, it means the second vehicle and is subject to progressive vehicle tax. That’s how it goes.

How to calculate the progressive tax rate

The way to calculate the progressive tax rate is not too complicated and difficult, you can even do it yourself as long as we know the motor vehicle tax (PKB) listed in the vehicle registration certificate.

The first step to find out the progressive vehicle tax rate, first make sure the selling value of the motorized vehicle with the formula below.

NJKB Vehicle

(Motor Vehicle Tax / 2) x 100

After knowing the NJKB of the vehicle, then multiply it by the percentage of the progressive vehicle tax rate according to the order of vehicle ownership.

The following is a case study of the application of a progressive vehicle tax rate for ownership of more than one two-wheeled motorized vehicle. To make it easier, we use an example with ownership of a motorcycle of the same type in the same year.

This is done so that the calculation simulation is easier to understand. Because if the type and year are different, it will affect the value of the NJKB so that it will also affect the progressive tariff that must be paid.

Advantages and disadvantages of progressive tax rates

By knowing the provisions of the progressive vehicle tax rate that has been set by the government, we can also prepare an expenditure budget according to the number of vehicles we have.

The more vehicles we have, the greater the consequences of the progressive vehicle tax rate that must be paid.

Therefore, reconsider the intention to have a vehicle in excess of the required number. Especially if we still live alone or together with our wife/husband.

Let’s follow the government’s advice to prioritize the use of public transportation to help reduce traffic congestion and congestion. 

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