New measures for collection of tax dues

JAKARTA (JP): Central Jakarta Mayor Andi Subur Abdullah has vowed to take firm action against local businessmen and residents who are five years overdue in paying their land tax.

Andi said on Friday he would personally lead a team assigned to collect delinquent taxes on a door-to-door basis.

"I will personally lead the team. If they (delinquent taxpayers) still delay payment, we will confiscate their property or auction it off," he said at his office.

He said a reward would be given to those who settle their debt, but gave no details on the kind of award.

According to data from his office, at least 62,000 people living in the mayoralty have not paid their land tax from 1993 to 1998. Arrears of taxes have reached Rp 68 billion (US$9.7 million), he said.

About one-third of the overdue amount is owed by big companies, including hotels and golf course management companies, Andi said.

"Although the administration has facilitated tax payment procedures, they still refuse to pay what they owe in time," he explained, referring to the bank-to-bank payment system offered by the administration.

The mayor did not identify the bad debtors in the area, but Chalik Anwari, the head of the Central Jakarta land tax service, named them as SJ Hotel Group with Rp 960 million in arrears, PT RP in Senayan with Rp 1.8 billion, golf park management company PT AAS with Rp 800 million, PT DR in Senayan with Rp 900 million, LM Hotel with Rp 400 million and the office complex management company, PT DBPD in Karet Tengsin, with Rp 400 million.

The official quickly said that his office really hoped the debtors would settle later this month.

Chalik said that 95 percent of the estimated Rp 77.8 billion overdue in this year's taxes were paid.

His office, he said, would hold a raffle and randomly draw names of taxpayers who have paid taxes for this year before the end of this month.

"The prizes, ranging from Rp 100,000 to Rp 200,000, will go to six winners from every subdistrict," he said.

He said the raffle was aimed at luring people to pay their taxes as soon as possible. (01)