Land market prices set to increase<\/p>\n
JAKARTA (JP): The city administration will increase the
\ntaxable property price (NJKP) of land and building tax from 20
\npercent to 40 percent of the market price of properties which
\nhave a market price of Rp 1 billion (US$105,263) and over.<\/p>\n
Jakarta Regional Taxation Office head Djonifar A.S. said on
\nTuesday after a hearing with City Council that the new NJKP would
\nbe imposed starting Jan. 1.<\/p>\n
Djonifar said the increase was needed \"to improve city
\nrevenue, but at the same time it will not burden the poor\".<\/p>\n
According to Djonifar, the hike has already been included in
\ngovernment regulation No. 46\/2000 on land and building tax signed
\nby President Abdurrahman Wahid on June 26.<\/p>\n
With the increase the city administration is expected to
\nreceive a total of Rp 530.55 billion from property tax alone.<\/p>\n
\"In the past, almost 60 percent of the total land and building
\ntax revenue in the capital came from 35,000 taxpayers who owned
\nvast properties. Only 40 percent came from 1.3 million taxpayers
\nowning small and medium properties,\" Djonifar said.<\/p>\n
The 35,000 taxpayers each paid at least Rp 500,000 per year in
\nland and building tax.<\/p>\n
Market prices in the capital range from Rp 20,000 per square
\nmeter on the Thousand Islands to Rp 14 million per square meter
\non Jl. Sudirman, South Jakarta.<\/p>\n
Djonifar said his office would also increase the stated value
\nof taxable property (NJOP) of several areas in the capital as the
\nland usage in the areas had change.<\/p>\n
\"For example, in West Jakarta we will adjust the market price
\nof land in Puri Indah and Taman Permata Buana housing complexes
\nbecause before the areas belonged to locals and now there are
\nmansions there,\" Djonifar said, citing several areas in North
\nJakarta such as Pasir Putih and Pantai Mutiara. (dja)<\/p>",
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"sponsor": "Okusi Associates",
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