Jakarta eyes higher revenue from entertainment sector
Jakarta eyes higher revenue from entertainment sector
Damar Harsanto, The Jakarta Post, Jakarta
The Jakarta administration plans a more aggressive campaign to
collect taxes from the capital's numerous entertainment centers,
restaurants and hotels.
Deputy Governor Fauzi Bowo said the administration would not
hesitate to take punitive action against owners who refused to
pay their full taxes.
"If necessary, we will issue confiscation orders to force
owners to pay their tax obligations," Fauzi said during a hearing
with councillors on Tuesday.
The assistant to the city secretary for financial affairs,
Hari Sandjojo, said the administration wanted to increase tax
revenue from entertainment centers, hotels and restaurants in
order to reduce its dependence on revenue from vehicle taxes.
"We believe vehicle tax revenue will soon peak because the
city's streets are already overcrowded, so we need to increase
our revenue from other sectors," Hari told The Jakarta Post.
He voiced the suspicion that many entertainment centers in the
capital were underreporting their profits to avoid having to pay
taxes.
"Look at how much they charge for a bottle of mineral water
sold at a karaoke hall. It does not make any sense that they (the
management) do not pay taxes," he asserted.
Association of Indonesian Entertainment Center Owners chairman
Adrian Maelite said forcing entertainment centers to pay more
taxes would deal a severe blow to the already ailing industry.
"This policy will kill us. Lots of owners are still struggling
to overcome the impact of the massive antidrug campaign launched
by police in nightclubs and entertainment centers," Adrian told
the Post.
Entertainment center owners say the drug raids scared away
customers and forced owners to temporarily suspend 120,000
workers, or 30 percent of the 400,000 people employed by the
industry in the city.
Some owners also claim they have had fewer visitors since fuel
prices went up and forced people to cut unnecessary expenditures
like nights out.
Adrian also said media coverage of terrorist threats and the
bird flu outbreak was keeping tourists and locals away from
entertainment centers.
Executives of the Indonesian Hotel and Restaurant Association
were not available for comment on Tuesday.