New regulation on parking services aims to enhance transparency, boost local revenue, and improve parking management across the capital.
The DKI Jakarta Provincial Government has officially implemented a new regulation regarding parking tax. Through DKI Jakarta Provincial Regulation Number 1 of 2024 concerning Regional Taxes and Regional Levies, parking services in Jakarta are now subject to a Certain Goods and Services Tax (Pajak Barang dan Jasa Tertentu or PBJT) on Parking Services.
PBJT on parking services is a tax imposed on users of commercial parking services in Jakarta.
This policy has been implemented as a follow-up to Law Number 1 of 2022 concerning Financial Relations between the Central and Regional Governments. The objective of this parking tax policy is to enhance transparency in parking tax collection, clarify the parking management system in Jakarta, increase local revenue (Pendapatan Asli Daerah or PAD) to support urban development and regulate parking services to be more professional while providing benefits to the public.
By paying parking tax as required by the regulations, the public contributes to the realisation of a more comfortable, modern, and highly competitive Jakarta.
“PBJT on parking services is a tax imposed on users of commercial parking services in Jakarta. This tax applies to professionally managed paid parking areas, including off-street parking, valet parking services, and paid vehicle storage,” said the Head of the Revenue Data and Information Centre at Jakarta’s Regional Revenue Body (Badan Pendapatan Daerah Jakarta), Morris Danny, on Tuesday, the 18th of March.
The PBJT rate on parking services in Jakarta is set at 10% of the parking fee paid by the user. This tax is automatically incurred when the user pays the parking fee in cash or digitally. For example, if the parking rate is Rp20,000, then the tax payable is Rp2,000.
Taxable Parking Services
The following are taxable objects included in the PBJT on parking services:
- Paid parking areas managed by the private sector with official permission from the government;
- Valet parking services, where attendants assist in parking vehicles.
Parking Services Exempt from Tax
- Parking managed directly by the government;
- Free parking facilities for employees in office areas;
- Parking in the area of embassies or foreign country representatives;
- Small vehicle storage with a maximum capacity of 10 cars or 20 motorbikes;
- Special parking areas for motor vehicle buying and selling businesses.
Tax Obligations
Those required to pay PBJT on parking services include:
- Tax Subjects: Consumers or users of parking services;
- Taxpayers: Parking business managers, both individuals and business entities.