Ilustrasi. (ANTARA FOTO/Muhammad Iqbal).

Bicycle Tax Rules from VAT to Import Duty

The Ministry of Transportation (Kemenhub) will request a bicycle tax permit, registration permit which will be submitted to the bicycle safety party.

Spokesperson of the Ministry of Transportation Adita Irawati discussed preparatory rules in anticipation of diversion in the use of bicycles in big cities like DKI Jakarta. One of the rules that governs the use of light equipment, cyclist pathways and other safety devices.

However, what exactly are the bicycle tax rules?

Everyone who buys a bicycle in the country will pay a Value Added Tax (VAT) of 10 percent of the selling price. If a buyer buys a bicycle from abroad, the country has the right to collect import duty on the bicycle. Provisions on import duty on bicycles or other important items are regulated in Regulation of the Minister of Finance (PMK) Number 199 / PMK010 / 2019 concerning Provisions on Customs, Excise and Taxes on Imported Shipment Goods.

Every important item valued at US $ 3 or more requires an import duty of 7.5 percent of the selling price. Then, Value Added Tax (VAT) on imports by 10 percent. Meanwhile, for bicycles that are brought from overseas by their owners, the provisions regarding the provisions in PMK Number 203 / PMK.04 / 2017 concerning Provisions on the Export and Import of Goods Carried by Passengers and Crews of Transportation Facilities.

In the regulation, passengers' personal goods with a customs value of at most FOB US $ 500 per person for each visit are granted exemption from import duties or free. If the value of the bicycle purchased is greater than US $ 500, the buyer will be charged an import duty of 10 percent of the value of the purchase to receive US $ 500.

Furthermore, the state does not collect taxes on bicycle ownership and / or control. Related to, unlike vehicles, bicycle owners are not subject to the Motor Vehicle Tax (PKB) every year to the local government.