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)