Bylaw on advertising tax endorsed
Damar Harsanto, The Jakarta Post, Jakarta
The City Council endorsed a new bylaw on outdoor advertising tax on Thursday and called on the city administration to improve its control over advertising tenders to curb corruption.
While all factions in the council gave the bylaw approval, many also made recommendations.
"It is necessary for the administration to take sterner action without discrimination against advertisements that violate bylaws. Otherwise, visual pollution in Jakarta will become worse," Councillor Arifuddin Halking of the United Development Party (PPP) faction said.
He criticized the administration officials for their failure to consistently monitor and impose sanctions on bylaw violators.
"They only take action after numerous complaints by the public. Worse, their action is often too late," he said.
The faction called on the administration to end its closed- tender process as it encouraged bribery and corruption.
The new bylaw revises some clauses of Bylaw No. 8/1998 on advertising regulations and tax, setting out more details on how to calculate the tax.
"We agree that including how to calculate advertisement tax in the bylaw will make it more transparent and accountable to the public. Taxpayers will understand their obligations and will be able to cross-check the figure with tax officers," said Councillor Stefanus Surachmat of the Indonesian Democratic Party of Struggle (PDI-P).
Councillor Agus Darmawan of the National Mandate Party (PAN) faction said that the administration must end the practice of only appointing certain advertising agencies to put their advertisements in spaces in high-profile areas.
"Open tender for spaces in strategic locations will encourage agencies to compete for the areas in a fair way and, in the end, it will increase city revenue," he said.
The new bylaw needs further elaboration in the form of gubernatorial decrees, particularly on zoning advertising spaces.
Responding to the recommendations, Governor Sutiyoso promised his administration would review all advertisement taxes, especially those levied in lucrative areas, to decide whether they were realistic.
"We will also evaluate if advertising placements are in accordance with urban planning and urban aesthetics," he said.
Tax on outdoor advertising is one of the biggest revenue earners for the city administration. Last year, it received Rp 100 billion (US$11.8 million) from the tax, an almost 10 percent increase on 2002's Rp 91 billion.
Revenue from outdoor advertising tax is expected to increase another 10 percent this year.