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)