East Java DPRD Enacts Revised Regional Tax Law, Heavy Equipment

The East Java Provincial Council (DPRD) approved the amendment to Regional Regulation No. 8 of 2023 on Regional Tax and Retribution in a plenary session chaired by Deputy Speaker Blegur Prijanggono. Governor Khofifah Indar Parawansa and Vice Governor Emil Dardak attended the meeting.

The amendment corrects the authority over Mineral Non‑Metal and Stone (MBLB) tax, assigning it to municipalities in line with Law No. 1 of 2022, and postpones the implementation of the Heavy Equipment Tax (PAB) from 2025 to 2029. During the postponement, the provincial government must update the database of heavy‑equipment objects and may begin collection earlier if revenue potential is proven significant.

These changes provide legal certainty for taxpayers and businesses while aiming to strengthen sustainable Regional Original Revenue (PAD). If the revenue potential of heavy equipment remains low after 2029, the tax may be discontinued through a subsequent regulation revision.