Cash registers needed for 10% city sales tax

JAKARTA (JP): Cash registers must be used at all public eateries to enable the recording of development taxes paid by consumers, a councilor said.

The chairman of the commission in charge of city income, Helmy A.R. Syihab, said that at present, the public has no way of knowing for sure whether the 10 percent tax added to their bills really goes to the city treasury.

"Surely we know that city income is always more than the previous year, but we cannot even roughly estimate how much we are not receiving," Helmy said in reference to the 10 percent tax paid at eateries and other centers charging development tax.

Enforcing the use of cash registers would be one way of trying to boost city income, he said after a council plenary session on taxes.

The session discussed a municipality suggestion to issue a city rule on the counting and paying of taxes by those who charge development tax on consumers, without the compulsory involvement of tax officials.

Self awareness in paying the taxes to the city is considered more effective by the municipality, which councilors noted was based on fostering mutual trust between the government and managements.

Speaking for Governor Surjadi Soedirdja, deputy governor in charge of economic affairs TB. M. Rais had responded to the opinions voiced earlier by all factions and commissions.

In his address, Surjadi said an attempt to enforce the use of cash registers proved ineffective during a 1992 pilot project.

"But if the city delivers harsh sanctions to violators and conducts unexpected inspections, I am sure this measure would work," Helmy, also a member of the United Development faction, said.

Sponsors could also be involved in giving small awards for consumers who have paid up to Rp 100,000 in restaurant taxes, for instance, he said.

"Without such a control mechanism, consumers could be subject to places which charge the 10 percent additional payment for their own profit," he said.

The city tax office is planning a joint visit today with councilors to a number of restaurants.

During his address, Surjadi also said that consumers of small eateries will remain free of taxes. This category covers eateries whose clientele are mostly low income people, are housed in temporarily constructed buildings, and are located in slum areas.

The category does not cover stalls and coffee shops which operate in commercial areas like in Pecenongan in West Jakarta, Jatinegara in East Jakarta and Blok M in South Jakarta, Surjadi said.

The plenary session was chaired by M. Djufrie, the council's deputy chairman. (anr)