Late tax payers to be penalized

The West Jakarta mayoralty is currently considering the possibility of penalizing property and land owners who are reluctant to pay taxes, an official said yesterday.

"For negligent taxpayers the penalties will include the withholding of building permits and other certificates," said Tito Setiawan, head of the mayoralty's land and property service office.

The negligent taxpayers are mainly businessmen and affluent citizens who own large tracts of land, he said, adding that in the current 1994/95 fiscal year, which started in April, his office has so far sternly warned 25 taxpayers for being late with payments.

Tito said that the land and property tax collections, which are targeted to total Rp 43 billion (US$20.5 million) in the current fiscal year, have so far reached Rp 17 billion.

The target has been raised to Rp 50 billion, he said, because of the 56 sub-districts throughout the mayoralty, two have tracts of land considered strategically situated for the development of shopping centers, luxurious housing complexes and office buildings.

Twenty seven sub-districts, however, are classified as less potential as they have large slum areas, he said, adding that these areas will be improved under a subsidy from the central government. (hhr)