Authorities to intensify tax collection

Authorities to intensify tax collection

JAKARTA (JP): The city administration is to intensify its
collection of local taxes and levies in order to maintain a
healthy budget for the rest of the 1997/1998 fiscal year.

Deputy Governor of Economic and Development Affairs Tb.M. Rais
said yesterday that the government had earlier banked on a Rp 223
billion (US$84 million) surplus from the 1996/1997 year which
ended in March.

That turned out to be ambitious, and the administration ended
with a much smaller surplus, Rais said during a meeting with
collectors from 30 tax offices in the city.

The administration however would strive to operate within the
budget already approved by the City Council for 1997/1998, he
said, adding that this necessitated more rigorous tax collection
to make up for the shortage.

In March the Council approved the administration's budget of
Rp 3.36 trillion ($1.4 billion) in total spending for the year
starting April 1, representing an increase of more than 5 percent
over 1996/1997.

The administration will intensify collection of taxes and
levies from health services, garbage and sanitary services,
identification card services, vehicle emission tests,
parking, funeral, clean water, markets, bus stations and
terminals, liquid waste treatment, and building and development
supervision.

Rais said that increasing revenue from local taxes and levies
would give the administration greater financial autonomy.

"We cannot rely too much on central government handouts to
finance the city's development programs," he said.

The administration still currently relies on central
government allocations for up to 40 percent of its revenues.

The administration has simplified tax collection procedures by
giving greater powers to mayoralties and district offices. The
move, announced in June, was designed to improve tax collection
services, greater accuracy, supervision and control of the tax
offices. (07)