Value added tax feared to cause traders' unrest<\/p>\n
JAKARTA (JP): The imposition of value added tax on traders at
\nPD Pasar Jaya markets will cause unrest, a councilor said
\nyesterday.<\/p>\n
The deputy chairman of the city council, Ismunandar said that
\nthe traders will not be happy about it adding that there are no
\nregulations requiring them to pay the tax.<\/p>\n
\"I believe that the traders will be unhappy with the idea of
\nimposing value added tax, which is not required under the terms
\nof Provincial decree No. 6\/1992,\" Ismunandar, the deputy chairman
\nof the city council said.<\/p>\n
Therefore, the directorate general of tax should exempt PD
\nPasar Jaya from the tax, he said.<\/p>\n
\"We will have to collect the tax from the traders if the
\ngovernment turns down our request to be exempted from the tax,\"
\nPD Pasar Jaya spokesman Lihardin Sipayung said.<\/p>\n
PD Pasar Jaya imposes 16 type of fees on traders, but not the
\ntax, based on provincial regulation No. 6\/1992, allowing the
\ncompany to collect fees for market development, business centers,
\nparking lot service, building maintenance and 12 other sevices.<\/p>\n
He said he could not say wether the traders will also be asked
\nto pay last years' tax towards settling the Rp 26.06 billion debt
\nowed for V.A.T. since 1989.<\/p>\n
Lihardin also suggested that the city administration should
\nreview the provincial decree and include value added tax
\nimposition on traders.<\/p>\n
The Directorate General of Tax threatens to confiscate PD
\nPasar Jaya assets to pay the debt.<\/p>\n
In 1989 PD Pasar Jaya failed to pay Rp 710.76 million in value
\nadded tax, Rp 1.5 billion in 1990, Rp 2 billion in 1991, Rp 3.8
\nbillion in 1992, Rp 4.33 billion in 1993, Rp 4.31 billion in 1994
\nand Rp 1.24 billion from January to March this year.<\/p>\n
The city claims exemption from the obligation because,
\naccording to government regulation No. 28\/1988, the money
\ncollected by PD Pasar Jaya, being part of the city's revenues,
\nshall be exempted from the 10-percent value added tax. (yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/value-added-tax-feared-to-cause-traders-unrest-1447893297",
"image": ""
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