Sat, 14 Dec 1996

Property tax collection issue takes new turn

JAKARTA (JP): A city councilor expressed disbelief yesterday at the inspectorate's recent findings that most uncollected revenues in the 1995/96 fiscal year were from property tax.

Amarullah Asbah, the secretary of the City Council's Commission C for financial affairs, among other things, said the finding meant property tax collection was a failure.

Governor Surjadi Soedirdja said Wednesday the inspectorate found 91 percent of uncollected revenues to March, the end of the fiscal year, were from property tax.

Amarullah said "according to the council's records the amount of property tax collected in the last fiscal year exceeded the target."

Citing commission data, he said the amount of collected property tax in 1995/96 was Rp 251.19 billion. This was Rp 67.51 billion over the target.

If the inspectorate's finding was true the administration should take proper action soon, he said

Governor Surjadi said the findings meant most Jakartans were reluctant to pay tax, although the tax collection system was appropriate.

647 findings

The inspectorate reported 647 cases from surveying 210 offices.

"Violation of regulations ranks first, with 29.51 percent," Surjadi said.

Surjadi said 630 of the 647 cases had been solved and the rest were in process.

The governor said he received 330 letters.

"From the 330 letters, mostly reporting irregularities, 43.75 percent told the truth," Surjadi said.

He said the number of the letters had fallen sharply from previous years.

He praised the quality of the reports. "The decreasing number of the letters shows the community is now more selective and rational in reporting cases."

From 330 letters, 97 were to P.O. Box 5000, an address especially for complaints, and 233 were sent directly to the governor.

Surjadi said 112 letters had been responded to which meant those cases had been dealt with.

"Most of the reports were about power abuse and land disputes," Surjadi said.

P.O. Box 5000 recorded 37 reports on power abuse and 12 reports on land disputes, while the governor got 48 reports on power abuse and 45 on land disputes.

The Ministry of Home Affairs' Inspector General, Soedarjat Nataatmadja, said Wednesday the findings would be reported to related government offices. "The findings are not intended to embarrass them." (ste)