New Pajak Opsen on Motor Vehicles Takes Effect in 2025: Boosting Infrastructure Development in Tangerang City
As of January 5, 2025, the new tax option (pajak opsen) on motor vehicles has been implemented across Indonesia, per the Law Number 1 of 2022 regarding the Financial Relationships between Central and Regional Governments. The City Government of Tangerang (Pemkot Tangerang) has clarified the details of this new scheme, which aims to enhance infrastructure and public transportation in the city.
Kiki Wibhawa, head of the Local Revenue Agency (Badan Pendapatan Daerah, Bapenda) in Tangerang City, revealed that the new tax option consists of two components: the Motor Vehicle Tax (Pajak Kendaraan Bermotor, PKB) and the Non-Tax State Revenue for Motor Vehicle Title Transfer (Bea Balik Nama Kendaraan Bermotor, BBNKB).
"Under this new system, the tax option for both PKB and BBNKB in Tangerang City is set at 66% of the Central Government’s share," Kiki explained on Tuesday, January 7, 2025.
For the fiscal year 2025, Pemkot Tangerang has set ambitious targets for this new tax option. The city aims to collect Rp674 billion through PKB and BBNKB taxes, with a breakdown of Rp390 billion from PKB and Rp284 billion from BBNKB.
The newly introduced tax option will primarily fund the development and maintenance of roads, as well as the expansion and improvement of public transportation facilities in Tangerang City.
Kiki expressed his gratitude to all taxpayers in Tangerang City for their punctual payments, stating that it significantly contributes to the city’s development. Looking ahead, Pemkot Tangerang is optimistic about achieving its 2025 targets, building on the increased taxpayer participation rates seen in recent years – 82% in 2023 and 89% in 2024.
