How to Calculate Progressive Vehicle Tax: Complete and Easy Guide

Progressive vehicle tax is an obligation for motor vehicle owners in several countries. However, many people are still confused about how to calculate it. This article will provide a complete guide on how to calculate progressive vehicle tax easily and quickly.

What is Progressive Vehicle Tax?

Progressive vehicle tax is a type of tax whose amount increases in proportion to the duration of vehicle ownership. The longer someone owns a vehicle, the tax rate charged tends to increase.

Progressive vehicle tax is a tax imposed on motorized vehicles owned by one person or entity under the same name, with the same type of vehicle and address. The amount of progressive vehicle tax is determined based on the number of vehicles owned, with increasingly higher rates for the second vehicle and so on.

Basis for Progressive Taxation

The basis for progressive taxation is usually based on:

• Vehicle Sales Value (NJK)
• Applicable tax rate (usually expressed as a percentage)

How to Calculate Progressive Vehicle Tax

Following are the simple steps in calculating progressive tax:

a. Determine the Vehicle Selling Value (NJK): NJK is the market price of the vehicle stated by the tax authority.

b. Determine Tax Rates Based on Duration of Ownership:

• Year 1-2: x%
• Years 3-4: y%
• Years 5 and above: z%

c. Calculate Vehicle Tax:

Vehicle Tax = NJK x Tax Rate

Example: If the NJK of a vehicle is IDR 100.000.000 and the tax rate for the third year of ownership is 2%, then:

Vehicle Tax = IDR 100.000.000 x 2% = IDR 2.000.000

Progressive vehicle tax can be calculated using the formula:

Where:

• NJKB is the NJKB value of the vehicle that was searched in step 1
• Tax Rate is the progressive tax rate that was searched for in step 2

The following is an example of calculating progressive vehicle tax:

• The first car with an NJKB of IDR 50.000.000 is subject to tax of 2% x IDR 50.000.000 = IDR 1.000.000
• The second car with an NJKB of IDR 50.000.000 is subject to tax of 2,5% x IDR 50.000.000 = IDR 1.250.000

It should be noted that the progressive vehicle tax rate may change at any time according to the policies of each local government.

Tips and tricks

• Always check the latest tax rates from official sources, because rates can change from time to time.
• If you find it difficult, use an online tax calculator which is widely available on the internet.
• Make tax payments on time to avoid fines.
• Transferring the name of the vehicle to someone else
• Selling unused vehicles
• Buy a new vehicle at a lower price

Conclusion

Understanding how to calculate progressive vehicle tax is very important for every vehicle owner. By following the steps above, you can easily find out how much tax you have to pay each year. I hope this information is helpful.