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Vehicle Tax Increase

Picking the Public's Pockets

Tuesday, May 22, 2001

Using the strengthening US dollar as an excuse, Jakarta's local government has increased motor vehicles taxes by 100 percent. Isn't this just a way of covering the regional budget deficit?

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IS IMITATION the sincerest form of flattery? It certainly seems as if regional governments think so. Why? Because several are imitating the central government's rather high-handed way of trying to cover the national budget deficit by increasing rates and taxes almost willy-nilly. Some regional governments have already prepared new regulations that will enable them to increase revenues by all but pick-pocketing the public.

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