City seeks review on tax rulings

City seeks review on tax rulings

JAKARTA (JP): The government should review three regulations
pertaining to collection of taxes and levies because they are
burdensome to the regional administration, Deputy Governor for
Economic and Development Affairs Budiardjo Soekmadi said on
Wednesday.

Speaking at a City Council plenary session on behalf of
Governor Sutiyoso, Budiardjo said the government should review
Law No. 18/1997 on the collection of taxes and regional levies,
Government Regulation No. 64/1998 on regional taxes and
Presidential Decree No. 6/1993 requiring payment of 20 percent of
revenues from hotel and restaurant taxes to the government.

Budiardjo charged that the regulations were unaccomodative
toward the administration's need for more capital to finance
routine and development expenditures amid sharp cutbacks in the
1998/1999 City Budget due to the crisis.

The budget was slashed from Rp 2.79 trillion to Rp 1.75
trillion in the first six month of its realization.

"We hope that the government will take our difficulties into
consideration."

He said that Law No. 18/1997 had reduced the city's ability to
collect various taxes and levies, including parking fees and
expatriate taxes.

Under the law passed by the House of Representatives in April
last year, the central government cut local taxes from 42
categories to nine and the number of levies from 192 categories
to 30.

Budiardjo claimed all local administrations had opposed the
obligation to submit 20 percent of regional revenues from hotel
and restaurant taxes, "but there has yet to be a positive
response from the government". (ind)