Late tax payers to be penalized

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)