Tax hike proposal denied<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The city administration claimed on Tuesday that it took no
\npart in the proposal to increase this year's property tax, which
\nhas shocked many taxpayers here.<\/p>\n
\"We even asked the (central) government not to increase the
\ntax,\" Governor Sutiyoso told reporters.<\/p>\n
He said his administration sent a letter to the directorate
\ngeneral of tax at the Ministry of Finance on Oct. 23 last year,
\nurging the central government not to increase the tax.<\/p>\n
He objected to the hike, because many Jakarta residents are
\nstill suffering from the economic crisis, and they would not be
\nable to afford the increase.<\/p>\n
\"The increase should have been avoided as the tax had already
\nbeen increased by 40 percent in 2001,\" Sutiyoso said in the
\nletter.<\/p>\n
The directorate general of tax increased this year's value of
\ntaxed objects without informing the public. As a result, many
\ntaxpayers were surprised to learn that they had to pay property
\ntaxes that were three times greater than last year's.<\/p>\n
The directorate general of tax, however, reportedly claimed
\nthat the tax increase was based on the administration's proposal
\nthat had already been publicized.<\/p>\n
The property tax increased automatically after the government
\nincreased the value of taxed objects because the calculation of
\nthe property tax is based on the value of the object.<\/p>\n
Separately, when contacted about the hike of the value of
\ntaxed objects, a number of tax officials refused to comment. They
\nsaid that the only official allowed to talk to the media were
\nthose on echelon II and above.<\/p>\n
\"We were ordered not to speak to reporters because the central
\ntax office wanted 'one voice' on this matter. It was caused by
\nyesterday's news reports by the media, which put us in an
\nunfavorable position\", said Tarmizi, head of the assessment
\nsection at the South Jakarta tax office.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tax-hike-proposal-denied-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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