Governor defends tax increase<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Undeterred by public complaints, Jakarta Governor Sutiyoso
\nfirmly refused on Monday to revoke his decree which raises
\nvehicle tax from 1 percent to 1.5 percent of the vehicles' value.<\/p>\n
\"It cannot be reviewed since we just followed the Ministry of
\nHome Affairs' decree,\" Sutiyoso told reporters at City Hall.<\/p>\n
Although the details were never discussed, the governor
\nclaimed that the issue had been generally addressed in earlier
\nmeetings with the City Council.<\/p>\n
Separately, Deputy Governor Fauzi Bowo also supported
\nSutiyoso's statement, saying that not all issues should be
\ndiscussed with the council.<\/p>\n
\"So, who is the executive (branch of government)? Why should
\nwe discuss it with the council?\" Fauzi told reporters.<\/p>\n
The decree on the tax increase was announced by the City
\nRevenue Agency on Friday.<\/p>\n
The agency values a vehicle at 80 percent of the market price.
\nFor a van with a market price of Rp 100 million, the owner should
\npay 1.5 percent of Rp 80 million or Rp 1.2 million.<\/p>\n
The administration aims to secure Rp 2.5 trillion from vehicle
\ntax this year, which will contribute Rp 9.7 trillion to the city
\nbudget.<\/p>\n
The gubernatorial decree was based on the ministerial decree
\n11\/2002 on the calculation of vehicle taxes which is applied
\nacross the country.<\/p>\n
The decree, which became effective on Monday, gives a 20
\npercent discount for public transportation vehicles manufactured
\nthis year or in 2001, while the tax for the old public
\ntransportation vehicles would remain the same.<\/p>\n
Jakarta has 3.8 million registered vehicles and motorcycles.<\/p>\n
The Indonesian Consumers Foundation (YLKI) and the City
\nCouncil expressed regret that the administration announced the
\ndecree before discussing it with the public or the council.<\/p>\n
They urged the administration to postpone the application of
\nthe decree until it is discussed and agreed upon, especially due
\nto the amount of the increase.<\/p>\n
They also claimed that they had never been invited by the
\nadministration to discuss the issue, as was the case with other
\nissues, such as public transportation fares and tap water
\ncharges.<\/p>\n
Residents also complained about the increase, saying that it
\nwould be a burden due to the increasing cost of living.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/governor-defends-tax-increase-1447893297",
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"sponsor": "Okusi Associates",
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