Indonesian Political, Business & Finance News

Property tax

Property tax

From Kompas

It is the obligation of every citizen to pay their land and
building tax. But what if the tax is quite disproportionate.
Should we pay it to show that we are loyal citizens?

My father owns a piece of land in East Bandung mayoralty, on
which he has a workshop for repairing motorized vehicles. It is
located on a small lane about 20 kilometers from the center of
Bandung city. The price for one square meter of land in that area
in 1993 was estimated at Rp 27,000, and for every one square
meter of building the estimation was Rp 191,000, which was quite
reasonable.

But in 1994 the estimated land price was shockingly increased
from Rp 27,000/square meter to Rp 285,000/square meter, over ten
times, and the new estimation for the building was 1,6 times the
old price. In fact the market price of land was only Rp
70,000/square meter.

A complaint was made to the local Tax Office in September
1994, but no reply has been received yet. We kindly ask the
Directorate General of Tax to explain this matter.

RICKWAN M.
Ciputat, Jakarta

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