City to meet tax target from tourism

Ahmad Junaidi, The Jakarta Post, Jakarta

The city administration is optimistic about reaching its target on entertainment, hotel and restaurant taxes of Rp 470 billion this year, despite the impact the Bali bombing has had on tourism.

"The tragedy affected the city's tourism for only about two weeks," City Revenue Agency head Deden Supriadi announced at City Hall on Wednesday.

However, Deden conceded that the revenue target was calculated before the Bali bombing, which occurred three weeks ago, or just a week after the 2002 city budget was reviewed.

He said that about 90 percent of the entertainment tax revenue had already been collected and that by the end of the year, especially after Christmas and New Year festivities, the target could be reached.

He claimed that tax receipts could decrease during Ramadhan as many restaurants, hotels and entertainment centers would have reduced hours.

"But even though people observe Ramadhan, people will still go to restaurants. Also not all entertainment centers are required to close," Deden said.

Governor Sutiyoso has issued a decree forcing the closure of certain entertainment centers during Ramadhan, such as discotheques, massage parlors, saunas and video game halls.

Other establishments, such as singing halls and live music halls, are allowed to open from 8:30 p.m. until 12:30 a.m. while all entertainment centers located in star-rated hotels are allowed to operate during the fasting month.

Deden said the Rp 470 billion entertainment tax represented 11 percent of the city's total revenue from taxes. Vehicle tax, which last year amounted to Rp 2.5 trillion, is a large source of income for the city.

He said the city administration also received Rp 2.7 trillion from the central government in land, property and income taxes.

With other income, the city administration targets Rp 9.7 trillion in revenue for the 2002 city budget.