Tangerang laments lack of taxes paid to coffer

TANGERANG (JP): The Tangerang regency administration has received no tax payments at all from the hundreds of companies operating in the area, according to regent Agus Djunara.

"All taxes are paid to the central government, and the central government distributes the taxes equally to all other regional administrations, which leaves us with nothing," Agus told reporters on Sunday after witnessing free circumcisions organized by the Sinar Mas Group in Serpong.

"What our regency gets is only acts of vandalism and protests. I hope that soon the full implementation of Law No. 22/1999 on regional autonomy will change the current situation," he added.

The central government has set Jan. 1 next year for the full implementation of the law on regional autonomy, along with the law on fiscal balance between central and local governments.

"The Tangerang regional administration has so far stayed out of industrial management, but later things like issuing permits will be arranged by the Tangerang administration," he said.

Agus said that the Sinar Mas Group had set a fine example of how industrial firms could contribute to society, by organizing free circumcisions to locals and awarding 100 scholarships to bright elementary school children.

"Firms could also help with managing cooperatives and giving loans to start a business," he said.

"When the law on autonomy has been fully implemented and the role of the regional administration becomes dominant, I hope that through such social acts, industrial firms can create a more safe and conducive atmosphere here."

Calls have been made for a quicker implementation of the law on regional autonomy. But the government has pointed out that it is not a problem-free task.

State Minister of Regional Autonomy Ryaas Rasyid earlier said that existing laws had been exploited by certain governors, regents and mayors, who had taken illegal levies from foreign investors.

Ryaas has said that due to the rampant practices the Singaporean government and some foreign companies had to take action that could wreak havoc on the investment climate in the country.

"Reliable sources told me that Singapore has added several provinces and regencies to its negative investment list in Indonesia," Ryaas recently told a hearing with the House of Representatives Commission II for domestic and legal affairs.

"Other bad news is that at least 13 foreign oil companies have stopped operating here due to the levies."

Ryaas said the government was now preparing a regulation which would rule on, among other things, the levies and taxes which regional administrations could take.

"We call on the governors and the regents to stop the practice since it will further burden businesses," he said.

He said the regulation and another seven regulations related to regional autonomy were expected to be completed in September. (41/ylt)