Revision of Regional Tax and Retribution Bylaw Said to Strengthen Fiscal Governance

Jakarta Deputy Governor Rano Karno stated that the revision of Regional Regulation Number 1 of 2024 concerning Regional Taxes and Regional Retributions aims to strengthen legal certainty, justice, and tax governance that is transparent, accountable, and adaptive in the region. “The views of all factions are an important part of perfecting the substance of the regulation so that it can answer the needs of the community and the development progress in Jakarta,” said Rano in response to the general views of DPRD factions during the DPRD DKI Jakarta Plenary Meeting at the DPRD DKI Jakarta Building, Tuesday (14/7). He also expressed appreciation to all DPRD factions for the various inputs that had been submitted during the discussion of the Draft Regional Regulation. “We welcome the suggestions and opinions submitted by all factions regarding this Draft Regional Regulation,” said Rano. According to him, these various inputs are an important part of perfecting the regulation to realise better regional tax and retribution governance. The revisions include adjustments to the provisions for the Certain Goods and Services Tax on electricity, the expansion of advertising tax exemptions, the expansion of cleaning service retribution exemptions for state educational units, and adjustments to the details of objects and rates of regional retributions according to evolving needs. Furthermore, Rano said that to increase Regional Original Revenue, the DKI Jakarta Provincial Government will develop a 2026-2030 Regional Revenue Reform roadmap. This will encompass strategies for strengthening fiscal capacity, tax intensification and extensification, service digitalisation, data integration, improving taxpayer compliance, and enhancing the quality of public services. He revealed that in the retribution sector, the DKI Jakarta Provincial Government is also ensuring there will be no increase in the Building Approval retribution rate. “In addition, we welcome the DPRD’s support for the planned implementation of Electronic Road Pricing as part of electronic-based traffic control. The adjustment of health service retribution rates will continue to consider the community’s ability to pay without compromising the quality or sustainability of health services,” Rano stated.