Karaoke bar, cafe closed down for tax violations

JAKARTA (JP): Two clubs were sealed off by city authorities on Tuesday for failing to pay the 30 percent entertainment tax.

Head of West Jakarta revenue office P.R. Dologsaribu led the action to close down Monggo Mas karaoke bar on Jl. Hayam Wuruk, West Jakarta; and Anang Nasrullah of the North Jakarta revenue office led the closing down of the Kafe Marina bar in Ancol, North Jakarta.

They will remain closed until they settle their taxes.

The two places were empty at the time with only the cleaners on the site. The owners were not present.

"They have not been paying the tax for years," Dologsaribu told reporters.

If they break the seal before they settle the tax, the owners would be liable for up to 32 months imprisonment, he said.

Dologsaribu said both establishments had been warned before the closure. "We had no choice but to enforce the law," he said.

He declined to disclose the sums of tax the two places owed to the administration. "That's off the record," he said.

Council Speaker H. Edi Waluyo separately criticized the administration for its lack of transparency.

"They (officials of the revenue agency) should be open to the public on such matters", Edi said.

Binsar Tambunan, head of the council's Commission A, said revenue officers should take firm actions against delinquent taxpayers, Antara reported.

He said many clubs have managed to evade paying their taxes by bribing officers who were sent to seal off their establishments.

Establishments such as discotheques, karaoke bars, massage parlors and night clubs face the highest entertainment tax rate at 30 percent of their revenues. Cinemas pay a range of 5 to 25 percent depending on the category while places for art, music and dance performances, billiard centers, amusement parks and sport venues are taxed at 10 percent. (07)