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)