Authorities call for street cafe tax<\/p>\n
JAKARTA (JP): Jakarta Governor Sutiyoso requested on Wednesday
\nthat owners of street cafes, which have the local name kafe
\ntenda, pay tax to the administration.<\/p>\n
\"I've observed that many of the cafes have a lot of
\ncustomers,\" Sutiyoso said, after bestowing certificates to the
\ncity's 92 best tax payers from hotels, restaurants and
\nentertainment centers.<\/p>\n
The governor said his administration would no longer tolerate
\nthe disregard by kafe tenda owners to contribute funds for the
\ncity budget as required by the existing law.<\/p>\n
He said an exception to the rule would be made only if cafe
\nowners lacked substantial a substantial client base.<\/p>\n
Sutiyoso said he had ordered officers responsible for such
\nmatters to identify all the cafes in the city.<\/p>\n
He said that in the past the city had not pressed the
\nobligation on the cafe owners in order to foster the growth of
\nbusiness activities during the recent economic crisis.<\/p>\n
\"But now, many of the street cafes are run by rich people and
\nhave a lot of customers.\"<\/p>\n
He said the move to request street cafe operators to pay tax
\nwas aimed at increasing city revenue devised from taxes.<\/p>\n
City revenue from tax and levies in the 1999\/2000 fiscal year
\nwas projected to reach Rp 3.69 trillion, Sutiyoso said.<\/p>\n
\"With signs of an economic recovery, I hope tax payers can pay
\ntheir tax obligations.\"<\/p>\n
The capital has witnessed a mushrooming of kafe tenda since
\nthe beginning of the economic crisis in mid 1997. Cafe owners
\nwere not obliged to pay the 10 percent tax, similar to that
\nimposed on restaurants, because most of them employed retrenched
\nworkers.<\/p>\n
Street cafes were subsequently established by wealthy
\nindividuals, including film stars and other prominent figures, at
\nstrategic locations, such as at the National Monument (Monas)
\nPark in Central Jakarta and the Central Business District, off
\nJl. Sudirman.<\/p>\n
According to City Bylaw No. 9\/1998 on hotel and restaurant
\ntaxes, street cafe owners are also obliged to pay 10 percent of
\ntheir earnings to the administration.<\/p>\n
Last year, the city administration collected Rp 276 billion in
\nhotel and restaurant taxes. The administration has projected
\nadding this year Rp 266 billion in hotel and restaurant taxes to
\nits coffers.<\/p>\n
Sutiyoso said the city's economic growth this year was
\nestimated to be recorded at minus 5.42 percent, an improvement
\nfrom last year's negative growth of minus 17.62 percent.<\/p>\n
The governor also vowed to punish \"errant\" tax payers in the
\ncapital who failed to meet their obligation.<\/p>\n
\"I believe many of them are yet to pay their taxes,\" he said
\nwithout elaborating. (jun)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/authorities-call-for-street-cafe-tax-1447893297",
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