Expatriate and alcohol tax

JAKARTA (JP): The city administration plans to increase its taxes on foreigners and alcohol, but drop its entertainment taxes.

The administration plans to increase the foreigner tax up to 1,000 percent. According to the plans, the annual tax on the head of a foreign family will increase from Rp 90,000 (US$39.13) to Rp 450,000 a year, the tax on foreign spouses will rise from Rp 60,000 to Rp 300,00.

The tax for the first and second child will increase from Rp 30,000 a year to Rp 150,000, for other children it will rise from Rp 30,000 to Rp 300,000.

The new decree, proposed by the city administration, stated that the increase will occur because there will be more foreigners working here in the era of free trade.

"There will be many foreigners working and establishing businesses here in the era," the decree stated.

In an effort to control alcohol consumption in Jakarta the administration plans to increase distributors license fees from Rp 1 million to Rp 10 million per year.

The administration will reduce entertainment taxes between 20 percent and 27 percent, said a confidential document made available to The Jakarta Post yesterday. There was no information on why the entertainment taxes would be reduced.

The city administration plans to introduce a new decree to tax electricity generator users. (yns)