Five hotels face seizure for tax arrears

JAKARTA (JP): The city administration threatened on Wednesday to seize more hotels if they refuse to pay their tax arrears.

Head of City Revenue Agency Deden Supriadi said that it planned to seize the five hotels with the highest tax arrears and fines totaling more than Rp 36 billion (US$3.2 million).

"We will take firm action against the hotels, including seizing them," Deden told reporters.

He said the five hotels had ignored three warrant letters sent by the city administration.

Deden said on Monday that the city would seize five-star Hotel Sahid Jaya, located on Jl. Jend. Sudirman, Central Jakarta, whose debts amounted to Rp 18.8 billion ($1.7 million).

According to city bylaw no. 3/1997 on tax and retribution, the city could seize the hotels if they had continued to ignore the third warrant letter one month after they had received it, Deden said.

After seizing the hotels, the city administration could announce a public auction of them, he added.

The five hotels which had still to pay their tax arrears and fines are Hotel Sahid Jaya, Hotel Mulia Senayan in Senayan, Central Jakarta, Putri Duyung Cottage in Ancol, North Jakarta, and Pulau Sepa Permai and Pulau Ayer, both in the Seribu Islands.

Hotel Sahid Jaya has the highest tax arrears and fine, as its taxes have not been paid since 1996.

Hotel Mulia Senayan is ranked second with Rp 17.3 billion tax arrears and fines which have not been paid since 1997.

Hotel Pulau Ayer's tax arrears and fines total Rp 264 million, while at Putri Duyung Cottage it is Rp 235 million and at Hotel Pulau Sepa Permai Rp 192 million.

He said that the city administration would seize the hotels as "shock therapy" for the management of these and other hotels.

"One of the five hotels claimed to have paid an instalment of Rp 1 billion after we threatened to seize it. But we have yet to receive the money," Deden said.

Deden said his agency was optimistic that it would secure more than Rp 350 billion in hotel and restaurant taxes this year, exceeding the target of Rp 340 billion. (jun)