Administration's planned levy increase hailed

Administration's planned levy increase hailed

JAKARTA (JP): While many Jakartans remain badly affected by
the escalating price of goods and services, the City Council on
Tuesday strongly supported the administration's proposal to raise
23 levies on public services and business activities.

The councilors agreed to back an administration proposal to
hike levies from between 27 percent and 600 percent during a
plenary session with administration officials, including Governor
Sutiyoso.

Councilor Ali Wongso Sinaga of Commission D for development
affairs said the levy hike was desperately needed by the
administration to help make up a shortfall in city revenue.

"Otherwise, the administration will not be able to run or
manage the city anymore.

The increase is essential ... and it has been agreed upon by
all city councilors," Ali said after the meeting.

He said the proposal -- after being approved by city
councilors -- would be submitted to the Ministry of Home Affairs
for further consideration.

"Once the ministry has studied the proposal thoroughly, the
proposal will be sent to Governor Sutiyoso to legalize the raise
through a new city bylaw.

The raise is expected to take effect six months from now," Ali
said.

Planned levy hikes in the public services would affect health
services, garbage disposal/sanitation services, ID card fees,
fees for birth/marriage/death certificates, public burial
services, motor vehicle tests, tests for fire extinguishing
devices, printing of maps and street parking fees.

The rise in levies for business activities would cover fees
collected from grocery markets and shops, bus terminals,
motels/villas, toilet cleaning services, slaughter houses,
recreation/sport centers and parking lots.

The proposal also reveals a significant hike in the collection
of fees for special permits, such as those issued for land use
and buildings.

The most noteworthy hike in the proposal was the six-fold
increase in the levy on garbage disposal services, from Rp 250
(three U.S. cents) per month per residence to Rp 1,500.

Unsurprisingly, the plan was strongly opposed by most
Jakartans.

"It's ridiculous," commented shoe shop attendant Sonia at
Mangga Dua shopping complex in West Jakarta.

She said she paid Rp 7,500 each month instead of the official
rate of Rp 250.

"What happens later when the administration increases the
monthly fee to Rp 1,500 per month?" Sonia said.

Irma, a housewife from Kebayoran Baru, South Jakarta, warned
the authorities that residents in her neighborhood would stage
protests should Sutiyoso approve the gigantic hike for the
garbage disposal service.

"It's crazy," Irma said, adding that she currently paid Rp
13,000 for the service.

The council also revealed plans to raise levies collected from
the city's estimated 8,500 "official" street vendors, from
between Rp 500 and Rp 1,000 per trader per day to between Rp 800
and Rp 1,500.

After the meeting Governor Sutiyoso said he would ask the city
Public Order office to "throw all 'unofficial' vendors out of the
business" unless they could soon register themselves.

"It's because of them that business at branches of the city-
owned market management firm PD Pasar Jaya in Pasar Minggu, South
Jakarta, and Cengkareng, West Jakarta has been very slow," he
said.

According to Gubernatorial Decree No 1362/1997, there are
8,468 official vendors located in the official 9,335 vendor sites
across the capital.

The number of unofficial street vendors is estimated at over
20,000 people.

The city administration also proposed to double fees on ID
cards processing to Rp 2,000 each.

The administration was earlier urged to abolish the levy
altogether.

Sutiyoso has in the past argued that in addition to increasing
city revenue, a fee hike on ID card processing would discourage
newcomers, especially from villages, applying for the cards.

The proposal also calls on parking fees to be hiked from the
current official tariff of Rp 300 per car to Rp 2,000.

City council deputy speaker Ade Suprijatna said discussion on
the subject was "very tough" before agreement was reached by all
councilors.

"The administration insists that they badly need money," he
said.(ylt)