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Driving in Bali to Become More Taxing

Bali to Introduce Amnesty to Increase Local Vehicle Registration for Enhanced Local Road and Vehicle Tax Revenues.


Bali News: Driving in Bali to Become More Taxing
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(5/21/2011)

In order to increase provincial tax revenues derived from vehicle registration, Bali is planning to launch a "registration amnesty," duplicating a program first held in July 2010. The man in charge of managing provincial revenues sources (Kadispenda), Ketut Sudira, said the 2010 amnesty did not manage to eliminate the still widespread presence of non-Bali registered vehicles operating in Bali on a permanent basis.

"Vehicles with non-Bali police plates use the roads of Bali without paying any tax contribution," Sudira complained.

He said the coming amnesty will be for four-wheeled and two-wheeled vehicles that are more than 10 years old. Last years program ran for three months from July to September 2010. "This year we will soon introduce an amnesty so cars from outside Bali operating in the various regencies of Bali can be registered and start paying road taxes in Bali," Sudira explained.

Of the estimated 2,386,000 vehicles recorded in Bali only 1,793,000 (75%) are recorded as having paid their road tax as of December 2010. Bali has targeted to collect road and registration tax revenues of Rp. 917.5 billion (US$104.2 million) in 2011.

In order to optimize the collection of road and vehicle taxes, Sudira's team is undertaking a re-inventory of vehicles in Bali, seeking to identify vehicles with double registration, vehicles that have burnt, vehicles that have changed hands but not been re-registered and missing vehicles. "If the re-inventory is successful the variance between vehicles registered and the number actually paying taxes should be uncovered. Moreover, the increase in vehicle taxes can reach more than Rp. 400 billion," Sudira said.

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