Land market prices set to increase

Land market prices set to increase

JAKARTA (JP): The city administration will increase the
taxable property price (NJKP) of land and building tax from 20
percent to 40 percent of the market price of properties which
have a market price of Rp 1 billion (US$105,263) and over.

Jakarta Regional Taxation Office head Djonifar A.S. said on
Tuesday after a hearing with City Council that the new NJKP would
be imposed starting Jan. 1.

Djonifar said the increase was needed "to improve city
revenue, but at the same time it will not burden the poor".

According to Djonifar, the hike has already been included in
government regulation No. 46/2000 on land and building tax signed
by President Abdurrahman Wahid on June 26.

With the increase the city administration is expected to
receive a total of Rp 530.55 billion from property tax alone.

"In the past, almost 60 percent of the total land and building
tax revenue in the capital came from 35,000 taxpayers who owned
vast properties. Only 40 percent came from 1.3 million taxpayers
owning small and medium properties," Djonifar said.

The 35,000 taxpayers each paid at least Rp 500,000 per year in
land and building tax.

Market prices in the capital range from Rp 20,000 per square
meter on the Thousand Islands to Rp 14 million per square meter
on Jl. Sudirman, South Jakarta.

Djonifar said his office would also increase the stated value
of taxable property (NJOP) of several areas in the capital as the
land usage in the areas had change.

"For example, in West Jakarta we will adjust the market price
of land in Puri Indah and Taman Permata Buana housing complexes
because before the areas belonged to locals and now there are
mansions there," Djonifar said, citing several areas in North
Jakarta such as Pasir Putih and Pantai Mutiara. (dja)