Bali offers vehicle tax fine amnesty and arrears discounts to boost compliance
Bali’s revenue agency has launched a two‑month waiver of motor vehicle tax penalties and targeted discounts on long‑overdue arrears, aiming to ease the burden on taxpayers while recovering more than Rp113 billion in unpaid PKB.
By Pandi Muktar
Editor: Mursyid Sonsang
· Event date: · 3 min read
Bali Province — The Bali provincial government has introduced a temporary waiver of vehicle tax penalties and targeted discounts on arrears in an effort to clear unpaid motor vehicle taxes and boost regional revenue, according to the provincial revenue agency and local media reports.
The Badan Pendapatan Daerah (Bapenda) of Bali is rolling out two motor vehicle tax relief measures: the removal of administrative fines on overdue payments and a reduction of the principal tax owed for vehicles with long-standing arrears, according to Bapenda officials quoted in local coverage. The programme runs for two months, from 9 September to 11 November 2026.
Under the arrears discount scheme, vehicle owners who have accumulated motor vehicle tax (PKB) debts for more than two years are allowed to settle only two years of outstanding PKB, while any remaining arrears beyond that period receive a reduction or are effectively written off, according to reports citing Bapenda Bali. The fine amnesty removes penalties on late PKB payments, enabling taxpayers to clear their obligations by paying the core tax without the additional administrative sanctions.
Bapenda Bali officials have said the policy is aimed at helping residents who have fallen behind on payments while increasing compliance and improving regional income. According to local reporting, unpaid motor vehicle tax in Bali has reached more than Rp113 billion, prompting the province to seek a balance between strengthening its revenue base and easing the burden on thousands of vehicle owners.
The current relief builds on a broader package of vehicle tax incentives in Bali that has been in place since early 2026. The province has been applying reductions to the principal motor vehicle tax based on engine capacity, as set out in a governor’s regulation issued in 2025.
Media reports on that regulation state that vehicles up to 200 cc receive an 8 percent cut to the PKB principal, while vehicles above 200 cc receive a 9 percent reduction. Additional discounts of 10 percent and 5 percent respectively are offered to taxpayers who have maintained good compliance and have no prior arrears.
Information publicised by the Bali provincial government and summarised by local outlets indicates that these engine-based discounts apply to vehicles across Bali throughout 2026, separate from the new two-month arrears programme. The combination of long-running PKB rate reductions and the short-term amnesty on fines and old arrears is intended to encourage both regular taxpayers and those who are behind on payments to settle their dues.
Local media reports have framed the new initiative as an opportunity for an estimated hundreds of thousands of vehicle owners to regularise their tax status at a lower overall cost. Provincial officials have appealed to residents to make use of the limited window between 9 September and 11 November, warning that normal fines and the full amount of arrears will apply again once the programme ends.
Sources
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