The ratification of Nusantara as the new National Capital (IKN) has altered Jakarta’s status.
The government has also formulated the Draft Law on the Special Region of Jakarta (DKJ Bill).
One of the aspects covered in the DKJ Bill pertains to parking and entertainment tax rates, which are due for adjustment. Consequently, this will result in increased parking fees for both two-wheeled and four-wheeled vehicles.
According to Article 41, paragraph 1 of the DKJ Bill, the parking service tax rate is capped at a maximum of 25 percent. This proposed tariff marks a change from the previous regulations outlined in the DKI Jakarta Regional Regulation Number 16 of 2010, where the rate was set at only 20 percent.
Simultaneously, within the same article, the entertainment services tax rate in Jakarta has also seen an upturn, ranging from a minimum of 25 percent to a maximum of 75 percent. In contrast, the previous tax amount, according to DKI Jakarta Regional Regulation Number 3 of 2015, was uniformly set at 25 percent.
For your reference, the House of Representatives has officially sanctioned the DKJ Bill for discussion with the government in the 10th plenary meeting of Session Period II for the 2023-2024 Session Year at the Nusantara II building, parliament complex, Senayan.
The complete text of Article 41 of the DKJ Bill, governing parking and entertainment taxes, is as follows:
(1) Parking service tax rates and entertainment service tax rates for discotheques, karaoke, nightclubs, bars, and steam baths/spas in the Special Region of Jakarta are determined as follows:
- The parking service tax rate is set at a maximum of 25 percent;
- The entertainment services tax rate for discotheques, karaoke, nightclubs, bars, and steam baths/spas is set at a minimum of 25 percent and a maximum of 75 percent.
(2) Regional tax rates, excluding parking services tax and entertainment services tax as referred to in paragraph (1), are determined in accordance with the provisions of statutory regulations.