In Reply to: Private drivers posted by sassyoz on Thursday, 26. May 2011 at 21:38 Bali Time:
okay, this is how it goes, when you have a licensed tourist business or car hire place then you purchase a car you must register it as a commercial vehicle, then also you must register it as a passanger carrying vehicle if not a truck, the passenger carrying licence is then issued to the car not the driver. It costs 10 mil over 5 years paid 6 monthly, the licences contribute more road tax then the small amount by regiserting a personal use vehicle as you will be using the roads more, far enough.
There are no more available as there are enough vehicles on the roads for the amount of visitors and it is to control road use, you know that terrible traffic we have. You can buy one off a business that no longer needs it.
Then, if a driver works for a company that is licensed it would be expected that he would pay income tax.
If he works for himself and has all the right licences, note there are many, then he would also pay company tax.
Now that the Governor has been pressured to fix the traffic problem and announced Balinese in Badung regency as 'wealthy' and only 5% are registered for income tax then this is how he sees to solve the problem.
Now, as tax paying people who are tourists in Bali and want less traffic jams and insured drivers and the roads fixed then maybe his method might make more sense as the licenses have been in place for years and he's also trying to get rid of corruption on the roads so the 50,000 that the drivers usually slip them will not work anymore.
By the way, I know this as we have all 13 licences needed to run a tourist business and have been through a lot and a lot of money to get them.
Drivers that just buy a car and want cash in hand have always known theyd get caught one day. They earn lot more when not on salary and dont have to worry about tax, we've tried employing drivers and none want to be on the books.