Nightclub closures could cost city Rp 258b in taxes

Nightclub closures could cost city Rp 258b in taxes

JAKARTA (JP): The city administration would lose about Rp
258.01 billion (US$112.17 million) a year if it closed all the
city's entertainment venues, a councilor says.

The chairman of the city council's commission C for finance,
Helmy AR Syihab, said yesterday that city revenue would decrease
because entertainment venues were one of its greatest sources of
income.

The councilor was commenting on a statement made by the head
of the city tourism agency, Fauzi Bowo, who said that the city
could survive without nightspots.

Fauzi told discotheque owners on Tuesday night that the city
administration would take strong action against those breaking
the law, especially the law regarding drug trafficking.

"The revenue will decrease because there are several taxes and
levies imposed on entertainment business, such as development
tax, entertainment tax and tourist fees," Helmy said.

Helmy said that in the 1995/1996 fiscal year the city received
Rp 258,01 billion from entertainment spots: Rp 61 billion from
entertainment taxes, Rp 196 billion from development taxes, Rp
22.14 million from alcohol taxes and Rp 823.85 million from
tourist fees.

"In the 1995/1996 period, regional revenue contributed Rp 1.67
trillion towards city revenue, and it will decrease if the city
administration eliminates all the entertainment spots. I think
such action will only harm city revenue," he said.

Helmy said that closures would hurt the people employed by
nightspots.

"Don't forget the sector employs thousands of workers who
would be unemployed if the spots were closed down," he added.

Jakarta needs nightspots to meet the public's demand for
entertainment, especially since the authorities have been trying
to turn Jakarta into a service city, Helmy said.

He said the city's decision to allow many nightspots was
correct, and that eliminating the nightspots would solve nothing.

"I oppose drug trafficking, but the city administration should
find better ways to fight it other than closing down the
nightspots," he said.

The city administration, City Police and the Jakarta Military
Command have been conducting operations to nab drug traffickers
at nightspots.

The city administration has urged disco owners to help fight
the Ecstasy trade. (yns)