City Council expects higher city revenues

City Council expects higher city revenues

JAKARTA (JP): The City Council said that the city
administration could collect more revenue if it increased tax-
collection and improved efficiency in city-owned companies.

Council members from the United Development Party (PPP), the
Indonesian Democratic Party (PDI) and the ruling Golkar group
made the statement in a plenary session on Wednesday in which
they discussed a city budget proposal for the 1995/1996 fiscal
year .

The PDI said the City Water Company (PAM Jaya) lost money as a
result of its inability to control water leakage.

"Water leakage means that profits are smaller," said PDI
councilor Djenny Suharso.

Governor Surjadi said last week that the city administration
had estimated that in the coming fiscal year revenues would be
22.5 percent higher than last year's, an increase from Rp 1.16
trillion to Rp 1.42 trillion. The budget itself will be Rp 2.21
trillion (about US$1 billion) or 5.8 percent higher than last
year's.

The city revenues in the coming fiscal year are estimated to
be comprised of Rp 1.13 trillion in taxation, city fees of Rp
181.45 billion, profits from city-owned companies of Rp 34.76
billion, city offices revenues of Rp 6.54 billion and other
revenues estimated to reach Rp 61.22 billion.

Meanwhile, the ruling Golkar group said measures to increase
revenues should be carried out soon, especially efforts to
collect taxes such as entertainment taxes. He pointed out that
there were some sectors which had not yet paid tax as tax
collectors had not yet carried out their function fully and not
all people understood their obligation to pay tax.

Golkar proposed that the city administration develop a
computer link between the City Revenue Office and hotels or
restaurants, in order to monitor the amount of tax that should be
paid.

Golkar queried the level of tax collected from companies using
outdoor advertising space.

"The administration should examine the role of private
companies in this field because Golkar expects that revenue from
advertisement tax will be higher than the Rp 3.2 billion
predicted for the next fiscal year," Golkar councilor Arie Putra
Bintana said.

Councilors from each of the three political groups said that
the city administration should restructure City Parking
Authority's (BP Parkir's) management because parking was a
potential source of revenue.

The Indonesian Democratic Party questioned the city
administration's estimate, for net parking revenue, of Rp 6.3
billion, saying the parking sector was capable of contributing
more to the city's coffers.

"It is time the city administration increased its efforts to
collect more funds from the parking sector," Djenny said.(yns)