JAYAPURA – The Papua Provincial Government, through the Regional Revenue Agency (Bapenda) of Papua, has officially announced the extension of the program for motor vehicle tax penalty waivers and principal arrears discounts. The program, which was initially scheduled to end on August 29, 2025, will now remain in effect until September 30, 2025.

The extension was introduced in response to the significant number of taxpayers who have not yet been able to take advantage of the program. It also takes into account the community’s limited financial capacity amid the current economic situation.

“Considering that many taxpayers have not yet had the chance to benefit from this program, and given the community’s weak payment capacity due to current economic conditions, the tax penalty waiver and arrears discount program has been extended until September 30, 2025,” said the Head of Bapenda Papua, Yosefina Fransisca Way, as conveyed by the Acting Head of the Tax Division, Ardy Bengu.

She emphasized that this extension will be the final opportunity, with no further prolongation planned.

“We hope that the community, especially motor vehicle owners, will be assisted and relieved in fulfilling their tax obligations by utilizing this waiver and discount program. This is the last extension, so we encourage taxpayers to make use of it,” she stated.

Previously, the Papua Provincial Government issued a regional tax relaxation policy in the form of penalty waivers and discounts on motor vehicle tax arrears. This policy was established under Papua Governor’s Decree No. 100.3.3.1/KEP.146/2025 and Head of the Regional Revenue Agency Decree No. 19 of 2025, which outlined the technical guidelines for its implementation.

The policy was introduced to address the low compliance rate among motor vehicle owners in Papua. According to the Regional Revenue Agency, low compliance is primarily attributed to limited public awareness of tax obligations and weak payment capacity due to the sluggish economy.

By extending the program, the Papua Provincial Government aims not only to alleviate the financial burden on the public but also to enhance compliance levels among taxpayers. It is expected that more vehicle owners will take the opportunity to settle their arrears, thereby contributing to improved regional revenue and supporting development programs in Papua. ***