How to Calculate Progressive Vehicle Tax Easy! – How to Calculate Progressive Vehicle Tax, Easy!, Tax is one of the tasks that every good citizen must do. The progressive car tax is one of several types of taxes that apply in the nation. This form of tax is known to have its own way of computation for owners of more than one car.

So, for those of you who are interested in learning how to compute progressive tax, we have provided detailed instructions below. But, before we get into the meat of the matter, let’s define progressive taxation.

What exactly is a progressive tax?

A progressive tax is a cost levied on those who possess several vehicles, such as a car or a motorbike. This tax is levied if the automobiles possessed are of a certain age. the same kind and for a personal or family name remaining at the same address.

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The primary goal of this fee is to minimize traffic congestion by discouraging people from owning more than one car. Furthermore, it is envisaged that individuals will prefer public transit to assist with daily movement.

The amount of tax levied under a progressive tax is different for the first, second, third, and so on automobiles. In this situation, the sum will rise as the number of identical cars owned grows.

Simply said, if you have two automobiles at home, you will have to pay taxes on the first and second vehicles.

The tax rate differs between the first and second automobiles, with the second car having a greater percentage rate than the first.

The legal foundation and procedures governing the imposition of taxes on motorized vehicle owners are outlined in Law No. 28 of 2009 covering regional taxes and regional levies. According to the legislation, there are three reasons for owning a second vehicle that is subject to taxation:

  • Possession of a four-wheeled motorized vehicle.
  • The number of motorized vehicles owned is fewer than four.
  • Having more than four motorized vehicles.

So, for example, if you have three separate vehicles under your own name, such as a motorcycle, a car, and a truck. The three automobiles are considered as first ownership since they are of distinct sorts.

Taxation is progressive.

You are now aware that a progressive tax applies to the ownership of a second car and so on. The percentage of the fare increases in proportion to the number of cars. So, how much is this car tax?

Motor Vehicle Progressive Tax Rate

Article 6 of Law No. 28 of 2009 specifies the amount of the progressive motorcycle tax rate. According to this rule, the initial motorbike ownership tax rate is subject to a minimum tax fee of 1% and a maximum tax fee of 2%.

While future ownership, meaning ownership of the second, third, and so on, is subject to a progressive tax rate of at least 2% with a maximum of 10% This percentage is variable in the sense that each area can freely select the amount of its own tax as long as it does not exceed the legal range.

As an example, consider the amount of the DKI Jakarta area’s progressive motorbike tax. The first car is subject to a 2% progressive tax, after which the levy rises by 0.5% each year.

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The second car is subject to a 2.5% progressive tax, the third to a 3% progressive tax, the fourth to a 3.5% progressive tax, and so on until ownership of the seventeenth vehicle is subject to a 10% progressive tax.

Progressive Car Tax Rate

In essence, imposing a progressive automobile tax is similar to imposing a progressive motorbike tax. A progressive automobile tax is also levied on those who have more than one car registered in their name with the same ownership and residence.

30 days following automobile ownership change by bringing the requirements in the form of a photocopy of the STNK and KTP.

If no photocopy of the STNK is available, the previous owner can still report it by recalling the police number and the kind of car being sold.

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The identification on the vehicle STNK must also match the ID card below. The progressive tax on vehicles is almost the same as the progressive tax on motorbikes in terms of the percentage of the rate itself.

Now, on to the most anticipated submenu: how to compute progressive tax. Here we describe how to compute vehicle tax for either a motorbike or a car, along with an example.

When purchasing a secondhand automobile from someone else, it is strongly advised that you alter the name of the car’s ownership. This is done so that the progressive auto tax is no longer levied on the previous owner and is borne by the new owner.

Furthermore, the owner of the previous automobile is required to promptly notify the provincial Samsat of the transfer of car ownership. This report is completed at least once.

Author: Irdansyah
I'm a regular contributor to IRDANSYAH commander, and in my business blog, my team and I share tales on the experience of starting a business from zero, how it feels to build a startup, and how to scale-up.

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