Let's Learn How to Calculate the Correct Progressive Vehicle Tax

Want to buy a private vehicle to meet your mobility needs? You can do this as you wish. But do you know that every vehicle you own will be subject to tax based on its quantity? To be more precise when paying, pay attention to the correct way to calculate the progressive tax on your beloved vehicle below.

Understanding Progressive Vehicle Tax

Actually, progressive tax is the amount of tax imposed on motor vehicle owners, whether in the form of four-wheeled or two-wheeled vehicles with value-added tax. 

The progressive tax is paid based on the number or quantity and the price or value of the object. However, this tax is only applicable if you own more than one vehicle.

In addition, the vehicles must be owned in your own name or the name of family members living under one roof. You should know that the progressive tax follows a regulation called Law Number 28 of 2009 concerning Regional Taxes and Regional Levies. This regulation also explains how to calculate the progressive vehicle tax.

Read Also: Easy Ways to Calculate Annual Vehicle Tax for Up to 5 Years

How to Calculate Progressive Vehicle Tax

As previously explained, the imposition of progressive tax is based on certain factors related to the tax object, for example, a car. 

Before performing the calculation, it is advisable to know two basic elements in the imposition of tax, namely the Motor Vehicle Selling Value (NJKB) and the weight or negative effect of vehicle use.

In general, the progressive tax rate for cars uses a formula of +0.5% for each additional car owned. For example, the first car will be subject to a tax of 1.5%, when you own a second car, it will be charged a rate of 1.5% + 0.5% = 2%, then buying another car will be charged 2.5% and so on. 

The more car units you own, the larger the progressive tax rate will be. So each car will have a different rate. 

The calculation of the progressive tax for cars essentially starts with calculating the NJKB using the formula (Progressive Vehicle Tax : 2) x 100. 

To see the value of your vehicle's PKB, try checking it on the back of the Vehicle Registration Certificate (STNK). An example of how to calculate the progressive vehicle tax is if you own 2 units of cars with the same type and year. Then the PKB value is Rp. 2,000,000 and SWDKLLJ (Mandatory Contribution for Road Traffic Accident Fund) is Rp. 200,000.

The NJKB you obtain is (PKB : 2) x 100 = (Rp. 2,000,000 : 2) x 100 = Rp. 100,000,000. Thus, the calculation of the progressive tax for the first car is PKB = NJKB x percentage = Rp. 100,000,000 x 1.5% = Rp. 1,500,000. 

Then add with SWDKLLJ, which is Rp. 1,500,000 + Rp. 200,000 = Rp. 1,700,000. Meanwhile, for the second car, PKB = Rp. 100,000,000 x 2% = Rp. 2,000,000.

The progressive tax imposed on the second car is Rp. 2,000,000 + Rp. 200,000 (SWDKLLJ) = Rp. 2,200,000. Essentially, the way to calculate the progressive vehicle tax depends on the regulations in each region. 

For example, in DKI Jakarta, in the Regional Regulation of DKI Jakarta Province Number 2 of 2015, the percentage of the progressive tax rate starts at 2%. 

As a good citizen, you must always comply with all regulations from the government, one of which is tax. In fact, the progressive tax imposed on every citizen is not only the motor vehicle tax (PKB) alone, but there is also Income Tax or PPh. 

Read Also: Luxury Car Tax in Indonesia, Rates and Calculations