Deregulatory measures not to affect city revenue<\/p>\n
JAKARTA (JP): Governor Surjadi Soedirdja said yesterday that
\nnew deregulatory measures on the reduction of local taxes and
\nfees would not affect city revenue as the measures would speed up
\nthe municipality's plan to improve its tax collection system.<\/p>\n
Surjadi made the remarks in response to a Monday announcement
\nby the government about the new measures, which included the
\ncutting of tax categories from 42 to only nine, and local fees
\nand levies from 192 categories to 30.<\/p>\n
\"The municipality will strive to intensify the collection of
\nremaining local taxes and fees to adjust to the new measures,\" he
\nsaid.<\/p>\n
The municipality has thus far collected 13 categories of local
\ntaxes and levies from 44 categories, he said, without giving
\ndetails on which taxes or fees would be eliminated.<\/p>\n
He said that he would order his officials to study the new
\neconomic reform package thoroughly. \"By studying the reform
\npackage, we will know its impact on city revenue,\" Surjadi said
\nat a ceremony, handing over letters of appreciation to relatives
\nof 16 deceased eye donors at City Hall.<\/p>\n
He said that the city supported the government's decision to
\nreduce costs through the new package, which stated that regional
\ntaxes and retributions would be levied only with the approval of
\nthe minister of home affairs after consultations with the
\nminister of finance.<\/p>\n
Meanwhile, Councilor Amarullah Asbah of Commission C on
\nfinancial affairs shared Surjadi's statement.<\/p>\n
He urged city officials to collect local taxes and fees
\nconsistently so as to encourage taxpayers to abide by existing
\nregulations. \"If they do their job recklessly, it will scare
\ntaxpayers, thereby affecting city revenue,\" Amarullah said.<\/p>\n
He said data from the City Council showed that in the
\n1996\/1997 fiscal year, which ended in April, the city collected
\nRp 1.39 trillion (US$568.06 million) in taxes, or 92.49 percent
\nof a targeted Rp 1.5 trillion.<\/p>\n
Among taxes which did not meet targeted amounts were those on
\ntransfer of vehicle ownership, entertainment, water transport
\nvehicles, transfer of water transport ownership and
\nslaughterhouses.<\/p>\n
Taxes which exceeded their targets in the 1996\/1997 fiscal
\nyear were taxes on vehicles, development projects, foreigners,
\nadvertisements, liquor, nonmotorized vehicles, street lights and
\ndogs.<\/p>\n
In the 1996\/1997 fiscal year, the city collected Rp 32.1
\nbillion in fees over the target of Rp 246.7 billion, according to
\ncouncil data.<\/p>\n
Surjadi said the municipality would train city tax collectors
\non the new economic measures with the aim of enabling them to
\nwork professionally and more properly and provide the public with
\nbetter services.<\/p>\n
He declined to say whether improper acts by officials were
\namong reasons for the loss in city revenue. \"I didn't say that,
\nyou did,\" Surjadi said. (ste)<\/p>",
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