City simplifies tax collection system
City simplifies tax collection system
JAKARTA (JP): The city administration has simplified
procedures for tax collection by giving authority to mayoralties
and districts to collect taxes.
The hand over of collection authority from city offices to
mayoralties and districts was intended to make tax collection
more effective, Governor Surjadi Soedirdja said.
Surjadi made the remarks at the city council's plenary session
Friday which heard an accountability report on the disbursement
of the city's budget of the 1996/1997 fiscal year.
He said the simplification was made because the old procedures
were very complicated.
"By giving more authority to mayoralty and district offices to
collect revenue, we expect to improve services, accuracy,
supervision and control of tax collection," Surjadi said.
The city would also improve the quality of its personnel and
coordination with related offices, he said.
During the session, Surjadi said that of the 1996/1997 fiscal
year's Rp 3.06 trillion (US$1.25 billion) revenue target, only Rp
2.97 trillion was collected.
He said the main drop in revenue was from fewer vehicle
registration transfers and taxes from entertainment
establishments.
Less people buying cars and more home entertainment, including
the increase in the number of commercial television stations to
five, led to less income for the city, Surjadi said.
But revenue recovered in the second semester of the 1996/1997
fiscal year, he said.
Revenue from vehicles, advertising and electricity exceeded
targets.
"But the amount could not compensate for reduced revenue from
the transfer of vehicle ownership and entertainment taxes,"
Surjadi said.
Other revenue targets which were not met included public
works, sanitation, fisheries, tourism, population, parking,
vendors, public hospitals, community health centers, bus
terminals and the zoo.
Surjadi said three city-owned companies: the PDAM Jaya water
company, the PD Pembangunan Sarana Jaya developer and the PD
Dharma Jaya slaughterhouse also failed to achieved their revenue
targets.
"Revenue from the city-owned companies only reached 72.24
percent of estimations," Surjadi said.
But the City Cemetery Agency, the City Land Transportation
Agency, and revenue from animal husbandry and artesian wells all
met their targets.
Surjadi said only Rp 2.83 trillion of the city's Rp 3.06 for
the 1996/1997 fiscal year had been spent.
Delays in land appropriation for city projects also
contributed to revenue targets not being met, he said.
City revenue has increased an average 26.85 percent a year
over the last five years from Rp 753.9 billion in 1992/1993 to Rp
1.78 trillion in 1997/1997. (ste/10)