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New measures for collection of tax dues

| Source: JP

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)

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