Deregulatory measures not to affect city revenue

JAKARTA (JP): Governor Surjadi Soedirdja said yesterday that new deregulatory measures on the reduction of local taxes and fees would not affect city revenue as the measures would speed up the municipality's plan to improve its tax collection system.

Surjadi made the remarks in response to a Monday announcement by the government about the new measures, which included the cutting of tax categories from 42 to only nine, and local fees and levies from 192 categories to 30.

"The municipality will strive to intensify the collection of remaining local taxes and fees to adjust to the new measures," he said.

The municipality has thus far collected 13 categories of local taxes and levies from 44 categories, he said, without giving details on which taxes or fees would be eliminated.

He said that he would order his officials to study the new economic reform package thoroughly. "By studying the reform package, we will know its impact on city revenue," Surjadi said at a ceremony, handing over letters of appreciation to relatives of 16 deceased eye donors at City Hall.

He said that the city supported the government's decision to reduce costs through the new package, which stated that regional taxes and retributions would be levied only with the approval of the minister of home affairs after consultations with the minister of finance.

Meanwhile, Councilor Amarullah Asbah of Commission C on financial affairs shared Surjadi's statement.

He urged city officials to collect local taxes and fees consistently so as to encourage taxpayers to abide by existing regulations. "If they do their job recklessly, it will scare taxpayers, thereby affecting city revenue," Amarullah said.

He said data from the City Council showed that in the 1996/1997 fiscal year, which ended in April, the city collected Rp 1.39 trillion (US$568.06 million) in taxes, or 92.49 percent of a targeted Rp 1.5 trillion.

Among taxes which did not meet targeted amounts were those on transfer of vehicle ownership, entertainment, water transport vehicles, transfer of water transport ownership and slaughterhouses.

Taxes which exceeded their targets in the 1996/1997 fiscal year were taxes on vehicles, development projects, foreigners, advertisements, liquor, nonmotorized vehicles, street lights and dogs.

In the 1996/1997 fiscal year, the city collected Rp 32.1 billion in fees over the target of Rp 246.7 billion, according to council data.

Surjadi said the municipality would train city tax collectors on the new economic measures with the aim of enabling them to work professionally and more properly and provide the public with better services.

He declined to say whether improper acts by officials were among reasons for the loss in city revenue. "I didn't say that, you did," Surjadi said. (ste)