City to seal off more nightspots for tax abuse
City to seal off more nightspots for tax abuse
JAKARTA (JP): Two more entertainment spots would be sealed off
probably on Thursday by city authorities for failing to pay the
total Rp 170 million (US$20,000) tax to the government, an
official said on Wednesday.
"We'll seal off Duta Dua and Timung Satu massage parlors, both
located in South Jakarta, on Thursday," head of the city revenue
agency, Deden Supriadi told a press conference.
Earlier on Tuesday, his office -- under the escort of
reporters -- closed down two clubs, namely Monggo Mas karaoke bar
on Jl. Hayam Wuruk in West Jakarta and Kafe Marina in Ancol,
North Jakarta, for failing to pay the 30 percent entertainment
tax.
According to Deden, his agency has listed a total of 11
entertainment places, including the four mentioned above, as
having failed to pay a total of Rp 6.03 billion in tax for the
past three years.
The nine other businesses, he said, won't be sealed off in the
near future "they have started paying some of the tax plus its
10-percent fine."
"We're still giving them a chance to settle their debts,"
Deden said.
He identified the nine places as the Sahid Jaya Hotel, Tunglok
Suki restaurant and Cipta Hotel in Central Jakarta; Ayam Goreng
Priangan restaurant, and Bubble Tea Restaurant in West Jakarta;
Istana Kuring restaurant in South Jakarta; New Cleopatra and
Manhattan discotheque in North Jakarta; and Sederhana restaurant
and its branches across the capital.
"The agency applies a self assessment procedure in collecting
the tax, which is usually due every mid-month. We also send
warning letters to the businesses failing to settle their dues,"
Deden said.
He explained the tax collection always considers the
taxpayers' performance and willingness, and tried not to
jeopardize their businesses.
Interviewed separately, secretary general of the Indonesian
Association of Entertainment Centers (Aspehindo), Adrian Maelite,
said the association could understand the agency's decision to
seal off the four places.
"The businesses were reported to have held their tax payment
for over a year. It exceeds tolerance," he said on the phone.
Aspehindo, however, demanded the city administration postpone
the enactment of the 30 percent entertainment tax, which has been
effective since November last year.
The implementation of the tax would force business operators
to hike their service charge as it was actually collected from
visitors, not from the businesses.
"We only collect the tax from our guests and then pay it to
the city revenue agency," he said.
"If the tax is too high, our guests will run away from our
businesses," Adrian added.
The association also proposed a stratification of the tax
instead of the flat rate tax of 30 percent.
"We propose that the high-class entertainment centers pay
higher tax than those of the lower class," he said.
According to Deden, the number of taxpayers in the
entertainment centers in Jakarta has dropped to 777 places in
1999 from 938 places in 1998.
About 183 of these taxpayers operate coin machine games, and
163 places provide massage services and the other 122 places are
billiard centers, he added. (07/nvn)