West Kalimantan Will Waive Vehicle Tax Fines and Transfer Fees

KatadataOTO – The West Kalimantan Provincial Government will waive fines for motor vehicle taxes and transfer fees starting next month. This step is being taken to increase locally-generated revenue (PAD).

With this, it is hoped that the public will not have to worry about being burdened with excessively high costs when paying vehicle taxes.

"We will waive tax fines in July to encourage increased taxpayer compliance and at the same time increase regional revenue. For people who have vehicle tax arrears, please be patient until the program takes effect," said Krisantus Kurniawan, Deputy Governor of West Kalimantan, as reported by Antara (02/06).

Not only that, the fee for transferring vehicles from outside the region to West Kalimantan will also be waived.

Photo : NTMC Polri

This policy was made so that owners of vehicles with license plates from outside West Kalimantan can have them transferred immediately. This will have a direct impact on increasing local tax revenue.

"I will cooperate with the Police to support this step. After the transfer, we can immediately register the vehicle in the regional taxation system," he said.

He believes that this policy will not only impact the provincial government but also the district and city governments. This is because 66 percent of the motor vehicle tax revenue is allocated to districts/cities, while the province only receives 34 percent.

"So if the license plates are not changed to West Kalimantan, everyone loses. Therefore, this policy will certainly have a direct impact on the region," he said.

The West Kalimantan Government also hopes that public awareness in paying taxes  can increase. So that  the potential for locally-generated revenue from the motor vehicle tax sector can be more optimal.

Photo : Korlantas Polri

It should be noted that motor vehicle tax has always been one of the largest contributors to PAD in various regions. Specifically for West Kalimantan, it is projected to be Rp 3.2 trillion in 2025.

The largest contribution to PAD comes from the Motor Vehicle Tax (PKB) and the Motor Vehicle Title Transfer Fee (BBNKB), with Rp 710 billion from PKB and Rp 727 billion from BBNKB, respectively.

The magnitude of these figures is certainly a consideration for the government in implementing various policies in their respective regions.