Bill on property taxes, levies passed into law

JAKARTA (JP): The City Council has passed a bill requiring the city administration to set aside its net revenue from taxes and levies for the improvement of public facilities in all the city's subdistricts.

The bill, endorsed by Governor Surjadi Soedirdja and City Council Chairman M.H. Ritonga in a plenary session yesterday, is primarily aimed at giving more authority to subdistrict officials in an attempt to reach tax and levy collection targets. The more taxes they submit to the city administration, the more they will receive.

There are three kinds of taxes and two types of levies stipulated in the bill. They include land and property tax, radio receiver tax, canine ownership tax and levies collected from street vendors.

According to Article 2 of the bill, 10 percent of the city administration's net revenue from land and property taxes should be given to subdistrict administrations.

Ninety percent of tax revenues from canine ownership and radio receiver taxes and 80 percent of total taxes and levies collected from sidewalk traders should also be distributed to subdistrict administrations.

Erna Soeparman, from the ruling Golkar faction, said that her faction has decided to pass the bill because it should motivate officials of subdistrict administrations to serve the public more professionally.

She also said the bill is expected to increase the number of tax payers.

She also urged the city administration to exercise stricter control of subdistrict administration officials since they now have greater responsibilities.

Djenny Suharso, a councillor from the Indonesian Democracy Party faction, said that to support the implementation of the bill the municipality should exercise tighter inspections, have a more effective auditing system and ensure treasurers have a high degree of integrity and responsibility.

Meanwhile, Arwi Rangkuti, from the United Development Party, said that the municipality's allocated portion of funds should be based on the financial condition of each of the subdistrict administrations.

The bill, which has been discussed since June 23 by the City Council, is in line with the Minister of Home Affairs' 1990 decree that requires the municipalities to set aside some of their tax income to be allocated to subdistrict administrations. (03)