Tax evaders to have license number revoked

The Jakarta Post ,  Jakarta   |  Thu, 10/16/2008 10:46 AM  |  City

Vehicle-owners who have failed to pay registration taxes for the past five years may have their license number revoked and have to reapply for a new one, traffic police officers said Wednesday.

The move aims to strengthen existing regulations and improve the tracebility of the vehicles.

"Hundreds of thousands of vehicles in Jakarta fail to report and pay their taxes every year, or renew their vehicle registration every five years. Even in a year, a lot of things can happen to a car, be it being sold or other changes. In five years, we have no idea what has happened to it," Giri Purwanto, head of the administration, registration and identification sub-directorate of the Jakarta Police Traffic Directorate, said.

"This makes it hard for us to trace the ownership of a car when a criminal act occurs. If the car is used in a robbery, for example, we will suspect the wrong owner. Updating a car's status is important to us."

Jakarta Police records show in 2006 almost 384,000 motorbikes, 81,000 private cars, 22,100 delivery vehicles and 740 buses failed to pay up.

The number of offenses indicates a growing trend. Among the four types of vehicles, motorcycle owners are the major offenders. More than seven in every 100 motorcycle owners did not clear their taxes in 2006, compared to three in every 100 in 2003. The percentage of offenders for private cars and delivery vehicles tripled to 4.4 percent in 2006, from around 1.5 percent in 2003.

Most truck owners pay their taxes, with only two in 1000 failing to do so.

"The taxes are controlled under a government regulation passed in 1993. With the increasing number of vehicles and accidents, we want to strictly impose it (government regulation) now," Giri said.

The head of the vehicle registration (STNK) unit at the Jakarta Police Traffic Directorate, Indra Jafar, said the owners would have to clear their overdue taxes and fines before registering for a new license plate.

"Although the number on the license plate stays as it is, the data (of the owner) is still linked. So anyone who wants to re-register has to clear their taxes first. Otherwise, (if we do not impose it), no one will pay taxes and new license plates will be needed every five years," Indra said.

The method of enforcing this procedure is still being investigated and police are not yet sure whether it will be implemented.

Jakarta license plates usually consist of the letter B first, followed by four digits and, as of recently, three letters. This extension is welcomed by some car owners who wish to acquire a specific number plate, such as those containing their lucky numbers. (mri)

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