Grab Taxi must pay tax on Lamborghini taxis

JAKARTA. The smartphone-based taxi order and car rental application Grab Taxi may operate Lamborghinis as part of its premium-car service as long as the company and the Lamborghini owners pay taxes as regulated in the Tax Law, says Jakarta Governor Basuki ‘Ahok’ Tjahaja Purnama.

“We have met and talked. It is not a problem if you create Grab Taxi, and not a problem using Lamborghinis. But the Lamborghini [owner] has to pay the tax applied to taxi vehicles,” Ahok said at Jakarta City Hall on Monday.

The taxation of the Lamborghini, Ahok added, was in accordance with the economic function of the asset. If those Lamborghini cars belonged to Grab Taxi, then they should be listed as the company’s assets as income was generated from them and subject to tax.

“If they [Grab Taxi] say they rent the cars from the owners, then the company should pay the insurance for the passengers, because our regulations oblige passengers to be insured. If the cars are listed as rented taxis, then the company must pay tax on them,” Ahok said.

The Jakarta Transportation Agency has warned GrabTaxi about possible sanctions, claiming that its recently launched luxury car rental service lacks the required permits. GrabTaxi responded to the notice by postponing its ‘GrabSpeed’ Lamborghini promotion program. (Edna Tarigan)