N. Sumatra loses billions in tax

MEDAN, North Sumatra: The provincial administration here expects to lose Rp 18 billion (US$2.25 million) in locally generated income after the Ministry of Home Affairs ordered an end to the collection of 73 different taxes and levies.

The repeal of these taxes and levies is stipulated in Minister of Home Affairs Instruction No. 10/1998.

Speaking on behalf of the governor, provincial spokesman Amri Tambunan pointed out that measures have been taken to accommodate the anticipated drop in income.

Among possible contingencies was diverting a portion of fuel taxes to the provincial government, Antara reported.