South Sumatra Launches Vehicle Tax Amnesty Program, Waiving Years of Penalties
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A new initiative in South Sumatra aims to alleviate the financial burden on vehicle owners and boost regional revenue by offering a comprehensive tax amnesty program. Beginning August 17, 2025, and running through December 17, 2025, residents can clear outstanding motor vehicle tax obligations by simply paying the current year’s tax, effectively erasing years of accumulated arrears and fines.
Addressing a Long-Standing Issue
The program, announced by South Sumatra Governor Herman Deru, is timed to coincide with the Independence Day of the Republic of Indonesia. It represents a significant effort to address a common challenge for vehicle owners – the accumulation of unpaid taxes and associated penalties. According to a statement from the South Sumatra Provincial Revenue Agency (Bapenda), the initiative is designed to provide relief and encourage compliance.
“In this program, the community only needs to pay 1 year PKB (Motor Vehicle Tax) and immediately free from all arrears and administrative sanctions in previous years,” a senior official stated.
Comprehensive Tax Relief Details
The amnesty extends beyond the elimination of arrears and fines. Participants will also benefit from the following:
- Waiver of BBNKB II (Motor Vehicle Name Transfer II) costs.
- Exemption from progressive taxes.
- Cancellation of SWDKLLJ (Annual Motor Vehicle Obligation) fines for the previous year and prior years.
Governor Deru emphasized the program’s potential to reactivate vehicle tax payments from those who had fallen behind. “By paying vehicle tax for just one year, people who were in arrears in vehicle tax could re-activate their vehicle tax,” he explained, as quoted on the official South Sumatra Provincial Government website. The governor further noted that the program simplifies vehicle registration, particularly for used vehicles, by waiving associated fees.
Enhanced Enforcement Following Amnesty Period
While offering substantial relief, the government also plans to strengthen enforcement measures after the amnesty period concludes. Governor Deru has directed the police, tax officers, and related service providers – including Raharja services – to implement stricter controls, including the installation of holograms to identify vehicles that have fulfilled their tax obligations.
“I want after 80 days, all vehicles can be orderly administration so that people are more comfortable and calm in driving,” he said.
Encouraging Regional Development Through Compliance
Achmad Rizwan, Head of the South Sumatra Provincial Revenue Agency, underscored the program’s broader objectives. He stated that the governor’s decree aims to ease the financial strain on residents while simultaneously promoting administrative compliance and fostering community participation in regional development through tax payments.
The initiative represents a strategic move to improve financial stability and encourage responsible vehicle ownership within South Sumatra.
