Progressive Taxes and Transfer Fees Removed! Check the Updated City List

The Indonesian U-22 national team successfully reached the semifinals with an outstanding performance at the 2023 Sea Games held in Myanmar. Garuda Nusantara swept all four victories, securing the top spot in Group A of the SEA Games 2023. Then, in the semifinals against Vietnam on Saturday, May 13, 2023, Indonesia once again took the lead with a score of 3-2 and will face Thailand in the final match to be held on Tuesday, May 16, 2023.

 

Are you planning to watch the final match together with your family or friends? Watching with your family or friends allows you to experience the excitement of the SEA Games 2023 together. Don't forget, when heading to the venue for a watch the the Final match, make sure the security of your vehicle is maintained. Also, don't forget to bring your vehicle documents to avoid any potential traffic violations that could disrupt your journey.

 

Speaking of vehicle documents, there is good news for those who are currently planning to pay taxes or undergo a vehicle ownership transfer process. If previously you had to spend a considerable amount of money to handle it, there is now a progressive tax elimination and transfer fee waiver program in place in several regions. Which regions have implemented these regulations? Find out in our following article.

 

 

What is Progressive Tax and Transfer Fee for Motorized Vehicles?

A progressive tax is a type of tax that's calculated based on a percentage rate. The percentage amount is determined by the number or quantity of the taxable object and its price or value. This can also apply to the motor vehicle tax. The transfer fee for used motor vehicles, known as BBNKB II, is a tax imposed by the local government when transferring ownership rights of used vehicles.  

 

 

Why Are Progressive Taxes and Transfer Fees for Motorized Vehicles Abolished?

Following are the reasons for the abolition of progressive taxes and motor vehicle transfer fees:

 

1. Reducing the load on society

With the abolition of progressive taxes and transfer fees for motorized vehicles, it is hoped that this will facilitate and lighten the burden on the community. Before this, the fees were charged at a higher rate, which may have caused some people to neglect their payments. This change is expected to encourage more people to comply with vehicle tax payments and enhance the quality of regional development.

 

2. Validating the national vehicle data

According to Tax.com, Brigadier General Yusri Yunus, the Director of Registration and Identification at Korlantar Polri, has stated that vehicle data in Indonesia is inconsistent across three agencies. The National Police's data shows approximately 150 million motorized vehicles in Indonesia, while the Ministry of Home Affairs (Kemendagri) records approximately 122 million. Meanwhile, PT Jasa Raharja (Persero) reports that there are 113 million motorized vehicles in the country.

 

Eliminating progressive taxes and transfer fees for motorized vehicles is expected to result in consistent and accurate data. The data from the Regional Revenue Service (Dispenda), Jasa Raharja, and the Police will be unified and reliable, enabling better registration of motorized vehicles in Indonesia.

 

Read Also: How to Check Vehicle Taxes Online Without Going to Samsat

 

 

When Will  the Progressive Tax and Transfer Fee of Motorized Vehicles be Abolished?

The abolition of progressive taxes and transfer fees for motorized vehicles is one of the implementations of Law (UU) 22 of 2009 concerning Road Traffic and Transportation, especially Article 74 regarding the deletion of vehicle data that is in arrears of 2 years of tax. Moreover, it is also in accordance with Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (HKPD). However, the complete implementation of this change is not yet in effect and is expected to be fully implemented next year.

 

 

Where Have the Abolition of Progressive Taxes and Transfer Fees for Motorized Vehicles Been Implemented?

Although the implementation has not been fully implemented, there are several provinces that have implemented the abolition. The Ministry of Home Affairs noted that there are 23 provinces that have abolished BBNKB II and 10 provinces that have eliminated progressive taxes. The following provinces have implemented the abolition:

 

Provinces that have abolished BBNKB II: 

1. Aceh

2. North Sumatra

3. West Sumatra

4. Riau Archipelago

5. Jambi

6. Bangalore

7. South Sumatra

8. West Java

9. Banten

10. Central Java

11. East Java

12. Central Kalimantan

13. East Kalimantan

14. West Sulawesi

15. North Sulawesi

16. Gorontalo

17. South Sulawesi

18. Southeast Sulawesi

19. Bali

20. East Nusa Tenggara

21. North Maluku

22. Papua

23. West Papua

 

Provinces that have abolished the progressive tax:  

1. Aceh 

2. Riau 

3. West Sumatra

4. Riau Archipelago

5. Central Kalimantan

6. East Kalimantan

7. Gorontalo

8. South Sulawesi

9. Maluku

10. West Papua

 

 

Transfer Fee for Motorized Vehicle Ownership Book 

Before the elimination of progressive taxes and transfer fees for motorized vehicles was implemented, transfer fees for motorized vehicle ownership documents (BPKB) were governed by Regional Regulation Number 9 of 2010 and Government Regulation Number 76 of 2020, which established the types and tariffs for non-tax state revenue (PNBP), as follows:

1. Administration fee of Rp. 35,000

2. Compulsory Road Traffic Accident Fund Contribution (SWDKLLJ) of Rp. 35,000

3. The cost of making a new BPKB is IDR 225,000

4. The cost of making a new police number is IDR 30,000

5. The cost of making a STNK is IDR 100,000

6. The fee for issuing vehicle registration numbers (TNKB) for two vehicles is IDR 60,000

7. The name transfer fee for Motor Vehicle Title Transfer Fee (BBNKB) is 10 percent. 

The basic rate that applies is usually 2/3 times the rate of the Regional Tax Assessment Letter (SKPD). Motor Vehicle Tax (PKB) of 2 percent for the first delivery, and an additional 5 percent for each subsequent delivery. If there is tax to be paid, the cost of returning the name of the motorized vehicle will increase. In addition, each region has a different tax policy, so the cost of returning a motor vehicle's name depends on regional policies.

 

READ ALSO: The Requirements and List of Regions Hold Bleaching for Vehicle Tax Delinquents

 

 

Terms and Methods for Returning the Name of a Motorized Vehicle Owner's Book

The following are the terms and conditions for returning the name of the BPKB:

 

A. Requirements for Returning the Name of BPKB

Before you come to Samsat to return the name of a motorized vehicle, you need to prepare the following requirements:

1. New owner's original KTP and photocopy

2. BPKB original and photocopy.

3. Original STNK and photocopy.

4. Proof of selling the vehicle or receipt of payment.

5. Proof of physical check of the vehicle.

 

B. How to Return the BPKB Name

The following are the steps for returning the name of the BPKB that you need to understand:

1. Visit the Samsat office according to the area where the motor vehicle owner lives.

2. Make sure you bring all the required documents for returning the BPKB name.

3. Stand in line to carry out a physical check of the vehicle by the Samsat officer.

4. Submit the results of the physical check of the vehicle and the required documents to the Samsat officer when registering at the STNK name counter.

5. The counter clerk at Samsat will call your name to continue the process of returning the name.

6. Make a payment at the counter to complete the BPKB transfer process.

 

The above is the information related to the elimination of progressive taxes and transfer fees for motorized vehicles, which has advantages for various parties. From the government's point of view, this regulation is expected to make people more obedient in paying taxes. There are many cases of PKB payments made at the place where the vehicle is registered even though the vehicle has changed hands to another area so that local government revenue will decrease. This will hopefully result in more accurate tax contributions. From a public point of view, the abolition will simplify the process of transferring names and paying progressive taxes, saving you from additional charges.

 

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