Breaking News: New Vehicle Taxation Scheme Introduced, हे tentang It Starting January 5, 2025
Mark your calendars, folks! Starting January 5, 2025, a new vehicle taxation scheme is set to kick in simultaneously across the board. Here’s everything you need to know about the upcoming changes.
Understanding the New Scheme
The latest tax regime, implemented through Law Number 1 of 2022 regarding Fiscal Balance between the Central and Regional Governments, will see an addition of two new columns in your Surat Tanda Nomor Kendaraan (STNK) – one for Motor Vehicle Pajak Kendaraan Bermotor (PKB) and another for Motor Vehicle Bea Balik Nama Kendaraan Bermotor (BBNKB). This law, known as Undang-undang nomor 1 tahun 2022, was ratified by President Joko Widodo on January 5, 2022, and will thus come into effect on the same date in 2025.
What are PKB and BBNKB?
PKB is an additional tax imposed by local governments (kabupaten/kota) on the base tax for motor vehicles, while BBNKB is a similar tax levied on the base tax for transferring vehicle ownership. These taxes are collected from motor vehicle owners by the respective local governments.
The introduction of PKB and BBNKB aims to replace the old system where the entirety of PKB and BBNKB payments went to the provincial government’s coffers. The new scheme ensures that local governments receive their share concurrently with provincial government receipts. Previously, the transfer of funds from provinces to local governments occurred periodically and was governed by each province’s local regulations.
Tax Rates: What You Need to Know
The new law sets the PKB and BBNKB rates at a fixed 66% on the total tax due. The calculation process is straightforward – you multiply the base PKB or BBNKB tax by the 66% rate to determine the final amount.
To soften the impact of the new scheme, the rates for the base taxes – PKB and BBNKB – have been reduced. Currently, PKB is capped at 6% for the first vehicle and 1.2% for subsequent vehicles (with progressive rates in between), while BBNKB is capped at 12%.
Stay tuned for more updates as we bring you the latest news and insights into the new vehicle taxation scheme that will affect us all starting next year.
