NTB Government Appreciates 375,742 Taxpayers for Paying Vehicle Tax with Gold Prizes

The provincial government of West Nusa Tenggara (NTB) in Indonesia is celebrating a significant achievement, with 375,742 taxpayers having paid their Motor Vehicle Tax (PKB) between January and June 2026. This success is attributed to a policy shift that now rewards citizens for timely tax payments, moving away from previous approaches.

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If for years incentives were mostly given through amnesty programs to tax defaulters, now the government is changing its approach by giving rewards to people who diligently pay taxes on time.

NTB Governor Lalu Muhamad Iqbal expressed his appreciation for the taxpayers' participation. He explained that the government is changing its paradigm from one that previously offered incentives through tax amnesty programs, often benefiting those who had delayed payments. "If for years incentives were mostly given through amnesty programs to tax defaulters, now the government is changing its approach by giving rewards to people who diligently pay taxes on time," Iqbal stated in a written release.

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For decades, we followed a policy that gave incentives to those who were not tax-compliant. Those who had not paid taxes for years received leniency during tax amnesty programs.

Governor Iqbal noted that this change followed an evaluation of the effectiveness of tax amnesty policies implemented over many years. While these policies could boost regional revenue in the short term, they created negative side effects. "For decades, we followed a policy that gave incentives to those who were not tax-compliant. Those who had not paid taxes for years received leniency during tax amnesty programs," Iqbal said. He observed that the beneficiaries of these amnesty programs were often the same individuals repeatedly, indicating a moral hazard where people delayed payments anticipating future amnesties.

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Gold was chosen because its value continues to rise, so besides being a gift, it can also be savings for the community.

As a more progressive form of appreciation, the NTB Provincial Government is awarding gold prizes to individuals who pay their PKB on time. The governor explained that gold was chosen not just for its value but also for its long-term economic benefit, serving as both a gift and a potential savings. Baiq Nelly Yuniarti, acting head of the NTB Regional Revenue Agency (Bapenda), reported high public enthusiasm for the program. Out of the 375,742 taxpayers who paid PKB, 215,757 met the criteria for the prize draw by paying on time without arrears or penalties. "This gold prize is a form of appreciation to the public who diligently fulfill their tax obligations. We hope this program further encourages public awareness to pay taxes on time," Baiq stated.

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This gold prize is a form of appreciation to the public who diligently fulfill their tax obligations. We hope this program further encourages public awareness to pay taxes on time.