Revenue office needs special post
Revenue office needs special post
JAKARTA (JP): An organization dealing with hotel affairs has urged the City Revenue Office to form a post to deal with anything relating to the shows held by hotels at New Year's eve.
The Midhotel Forum (Association of general managers of middle- lower class hotels), Diyak Mulahela said over the weekend there is a possibility that the officials and hotel managements have different interpretation of the shows. "A post which could arbitrate and intermediate in case of disputes due to the difference in interpretation is needed," he said.
The administration has issued regulations regarding the prices of show packages and time limits for New Year shows.
Regulation
According to Mulahela, the regulation practically has four points:
1. Pure shows need tickets and are subject to 25 percent in entertainment tax.
2. Restaurants with regular permit, including coffee shops which are open 24 hours, are subject to 10 percent in development tax.
3. Restaurants which want to open until 3:00 a.m must obtain special permits, and any transactions made before 11:00 p.m. are subject to 10 percent in development tax, and transactions made after 11:00 p.m. are subject to 25 percent in entertainment tax.
4. Hotels that sell a three-night show package, including room, meal must set aside 25 percent of half of the package price as entertainment tax, and 10 percent of half of the package price for development tax.
The hotels or entertainment centers must hand over the taxes to the City Revenue Office within seven days after the shows.
"We hope that the administration will use officials who are well informed about the regulations and the rules of the game," Mulahela said.
He also called on all hotel managements to abide by the regulations and warned the association members to set maximum price of year end's show package of Rp 750,000 (US$3428) as stipulated by the governor instruction.
The administration has decided to not increase the special ticket prices for the shows offered by entertainment centers on New Year's eve from last year's levels of between Rp 200,000 and Rp 750,000.
Jakarta has 233 star-rated and non-star hotels with rooms totaling 18,849.
The administration expects Rp 2.5 billion in taxes from the hotels' New Year's Eve shows. (sur)