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)