Low Vehicle Tax Compliance in North Sumatra Makes Rp 7.2 Trillion Revenue Target Difficult to Achieve

The level of taxpayer compliance for motor vehicle tax payments in North Sumatra Province is considered low. This situation has been occurring since previous years.

The low compliance rate for vehicle tax payments is affecting the difficulty in achieving the 2025 Regional Original Revenue (PAD) target of Rp 7.2 trillion.

Signs of this were already visible in the realization of North Sumatra’s PAD as of September 2025. Unfortunately, the exact figure for the PAD realization up to that month was not stated.

This was discussed during a press conference at the North Sumatra Governor’s Office.

It was stated that public compliance in paying motor vehicle taxes is quite low.

“Revenue optimization must be further enhanced. The Governor’s strategic policies require PAD support, and that must be supported more optimally,” it was said.

The Regional Revenue Agency currently manages seven types of local taxes: Motor Vehicle Tax (PKB), Motor Vehicle Name Transfer Fee (BBN-KB), Motor Vehicle Fuel Tax (PBBKB), Surface Water Tax, Cigarette Tax, Heavy Equipment Tax, and Non-Metallic Mineral and Rock Tax.

Among these seven types of taxes, the Motor Vehicle Tax (PKB) is mentioned as the most potential yet also the most vulnerable because public compliance remains low. The 2025 PAD target from PKB is Rp 1.741 trillion.

Furthermore, the target for the BBN-KB tax is Rp 1.66 trillion, the motor vehicle fuel tax is Rp 1.527 trillion, the surface water tax is Rp 122.8 billion, the cigarette tax is Rp 1.3 trillion, the heavy equipment tax is Rp 1.08 billion, and the Opsen MBLB tax is Rp 3.09 billion.

To achieve this PAD target, the Provincial Government continues its efforts by optimizing PKB payment service buses on Saturday nights and Sunday mornings. These buses operate in Binjai and Pematangsiantar.

There is also a service bus provided on Sunday mornings during the Car Free Day event at Merdeka Field in Medan, integrated raids for PKB payment compliance conducted simultaneously, and evening service hours.

“There is also an innovation through WhatsApp blast. This is a reminder notification via WhatsApp that the vehicle tax is due. This is done to increase public compliance or awareness to pay taxes,” it was explained.

It was also mentioned that efforts will continue to increase PAD revenue. The presence together with the media is also to encourage the public to be more aware of paying motor vehicle taxes, as this is a PAD object that is highly expected.