New levies to double city revenue
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
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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
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