New levies to double city revenue

Bambang Nurbianto, The Jakarta Post/Jakarta

The City Council endorsed on Thursday a new bylaw that would allow the city administration to impose one-time start-up fees and annual levies on golf courses, hotels, restaurants and entertainment centers.

Under current Bylaw No. 3/1999 on regional levies, the city administration does not impose levies on these types of businesses.

They do, however, have to pay taxes and the city administration has set a target for 2005 of collecting Rp 355.8 billion in taxes from hotels in the capital, Rp 296.7 billion from restaurants and Rp 126 billion from entertainment centers.

During deliberation of the new bylaw, council members said the tourist industry was a lucrative source of revenue for the capital.

In the new bylaw, which must be signed by Jakarta Governor Sutiyoso before taking effect, 71 new businesses will have to pay start-up fees and levies ranging from Rp 25,000 (US$25.32) to Rp 30 million a year.

The one-time fee for the development of a 36-hole golf course, for example, would be Rp 30 million, while for an 18-hole golf course it would be Rp 20 million. In addition, they would have to pay annual levies of Rp 15 million and Rp 10 million, respectively.

Anyone opening a hotel would have to pay a one-time fee of Rp 20 million, Rp 15 million for motels and Rp 10 million for bungalows.

Barbershop would be required to pay a one-time fee of Rp 250,000, billiard halls Rp 1 million, movie theaters Rp 1 million, massage parlors Rp 1 million and tourist information services Rp 1 million.

According to the spokesman for the Golkar Party faction in the council, Abraham M. Larobu, the new bylaw would allow the city administration to collect about Rp 600 billion in levies this year.

Jakarta's 2005 budget has been set at Rp 14.01 trillion.

The new bylaw also would eliminate levies on cemeteries, garbage collection companies, identity cards, family certificates and death certificates.

During deliberation of the draft bylaw, councillors opposed the administration's proposal to increase several levies, including for on-street parking, roadworthy checks for vehicles and health services.

The administration had wanted to increase the charge for Class III beds at city hospital from Rp 20,000 to Rp 60,000 per day, but withdrew the proposal in the face of strong opposition from the public.

New charges contained in the draft bylaw

No. Business Start-up fee Annual levy

in rupiah in rupiah -------------------------------------------------------------------

1. Nightclub 5,000,000 3,000,000 2. Discotheque 5,000,000 3,000,000 3. Live music hall 2,000,000 1,000,000 4. Karaoke center: A class 5,000,000 2,000,000

B class 3,000,000 1,500,000 5. Sauna 5,000,000 3,000,000 6. Massage parlor: A class 5,000,000 2,500,000

B class 3,000,000 1,500,000 7. Spa A class 5,000,000 2,500,000

B class 3,000,000 1,500,000 8. Movie theater A class 1,000,000 500,000

B class 500,000 250,000

C class 250,000 125,000 9. Bowling alley 2,500,000 1,250,000 10. Billiard hall A class 3,000,000 1,500,000

B class 2,000,000 1,000,000

C class 1,000,000 500,000 11. Sports 3,000,000 1,500,000

center 12. Golf course A class 30,000,000 15,000,000

B class 20,000,000 10,000,000

C class 15,000,000 7,500,000 13. Barbershop 250,000 125,000 14. Fishing pond 300,000 150,000 ------------------------------------------------------------