City to meet tax target from tourism

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.