Tuesday, 16 Safar 1441 / 15 October 2019

Tuesday, 16 Safar 1441 / 15 October 2019

Govt urged to drop tax plan on toll fares

Kamis 05 Mar 2015 10:21 WIB

Red: Julkifli Marbun

Toll roads (Republika/Raisan Al Farisi)

Toll roads (Republika/Raisan Al Farisi)

REPUBLIKA.CO.ID, JAKARTA -- The government should drop its plan to impose a 10-percent added-value tax on toll road fares because the toll road operators have not yet provided good services, a consumer protection activist said.

"The toll road operators have yet to meet the required minimum service standard. The average speed of vehicles on toll roads is now declining. Vehicle queues at toll gates are increasingly snaking down," Tulus Abadi of the Indonesian Consumers Foundation (YLKI), said in a press statement here on Thursday.

The toll road infrastructure is also bad. Many potholes are found on the toll roads.

Thus, the imposition of a 10-percent tax is inappropriate.

Besides, he said, the imposition of the tax will have impact on the rise of logistics. It will eventually affect consumers as prices of goods and other basic necessities will increase.

"The imposition of the added-value tax adversely runs counter to the government's policy to reduce logistics cost," Tulus Abadi added.

He said that the imposition of the tax is basically a covert toll fare increase. It can even be a double increase as the toll fares have an annual increase in certain sections.

"If the toll road fares are raised and then the tax is imposed it means that the increase has been double. This violates the law on traffic and land transportation as well as the government regulation on toll road," he stressed.

According to Tulus, the government should not burden the people with taxes in various sectors for the sake of increasing state receipts from the tax sector amounting to Rp1,300 trillion.

In the meantime, Deputy Finance Minister Wardiamo said on Wednesday the imposition of a 10 percent value-added tax on toll road fares from April 1 will not affect the prices of goods and basic necessities.

"For example, if the toll road tariff is Rp5,000, the value-added tax will only be Rp500. This will not raise the price of logistics," he said.

He added that the government aims to collect Rp500 billion as value-added taxes from toll road fares. "Toll taxes are collected to finance the development of infrastructure. If everything is limited, the government will not be able to increase its tax receipts."

The value-added tax on toll road fees will be collected as part of efforts to achieve the tax receipt target set in the Revised 2015 Stage Budget (APBN-P), Wardiamo explained.

This tax will be included in the toll road fares from April 1. All types of vehicles will be subjected to it.

Furthermore, Finance Minister Bambang Brodjonegoro is still willing to review the inclusion of the value-added tax in the toll road fares.

The imposition of the additional tax will cause the toll road fares to increase, even though the tax is not a toll road fare, which increases once in two years regularly.

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