JAYAPURA – The Governor of Papua has once again provided tax policy relief for the people of Papua in the form of a Tax Penalty Waiver and Motor Vehicle Tax Principal Reduction ranging from 5% to 40%, effective from May 15 to August 29, 2025.

Motor vehicle owners with overdue taxes will have their penalties waived and receive a 30% reduction in the principal motor vehicle tax if they have been in arrears for two years or more.

Additionally, a 40% discount on the principal tax is offered to vehicle owners who register for inter-provincial vehicle transfers. With this 40% discount, it is expected that residents still using out-of-province license plates will promptly transfer their vehicle registrations to Papua and begin paying taxes there. Until such a transfer is completed, the vehicle owner must continue to pay taxes in the province where the vehicle is originally registered.

Furthermore, a 5% to 40% discount is also available for Vehicle Ownership Transfer registrations. It is suspected that many people are using vehicles without officially transferring ownership, which results in legal inconsistencies. Ideally, the name on the vehicle registration certificate should match the name on the owner's ID card.

The government encourages the people of Papua to take advantage of this tax relief program, especially since discounts on the tax principal are not commonly offered; usually, only penalty waivers are granted.

This program aims to improve compliance among motor vehicle owners regarding their tax obligations and to streamline vehicle ownership administration, which is expected to increase regional revenue through motor vehicle taxes. ***