progressive tax

Jakarta’s Government Set to Increase Progressive Tax on Motor Vehicles in 2025

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The DKI Jakarta government has approved an increase in progressive vehicle tax rates for the year 2025. This adjustment is outlined in Jakarta provincial regional regulation No. 1 of 2024 concerning Regional Taxes and Regional Levies, officially inaugurated on 5th January 2024.

The revised progressive tax rates range from 0.5% to 1% and will come into effect in early 2025. Initially, there was a proposal to eliminate the progressive tax policy due to concerns about its burden on individuals owning multiple vehicles registered under the same name and address.

 

 

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Instances of individuals using borrowed addresses and names to evade high progressive taxes prompted this reconsideration. To facilitate a better understanding, the subsequent information outlines the fundamental calculations for determining the applicable tax amount:

  • The Motor Vehicle Sales Value (NJKB) is established by the Regional Revenue Service, and its impact on vehicle usage serves as an indicator of road damage levels.
  • To determine the NJKB value, you can refer to the back of the STNK (Vehicle Registration Certificate) sheets. Subsequently, multiply the NJKB amount by the corresponding progressive tax percentage.

UPDATE Rise in Progressive Motor Vehicle Tax in Jakarta by 2024

Here is the information on the progressive motor vehicle tax rates in Jakarta for 2025:

  • 2% applies to the ownership and/or control of the initial motorized vehicle.
  • 3% applies to the ownership and/or control of the second motorized vehicle.
  • 4% applies to the ownership and/or control of the third motorized vehicle.
  • 5% applies for ownership and/or control of the fourth motorized vehicle.
  • 6% applies for ownership and/or control of the fifth motorized vehicle, and the pattern continues for subsequent vehicles.

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