Tax hike proposal denied

The Jakarta Post, Jakarta

The city administration claimed on Tuesday that it took no part in the proposal to increase this year's property tax, which has shocked many taxpayers here.

"We even asked the (central) government not to increase the tax," Governor Sutiyoso told reporters.

He said his administration sent a letter to the directorate general of tax at the Ministry of Finance on Oct. 23 last year, urging the central government not to increase the tax.

He objected to the hike, because many Jakarta residents are still suffering from the economic crisis, and they would not be able to afford the increase.

"The increase should have been avoided as the tax had already been increased by 40 percent in 2001," Sutiyoso said in the letter.

The directorate general of tax increased this year's value of taxed objects without informing the public. As a result, many taxpayers were surprised to learn that they had to pay property taxes that were three times greater than last year's.

The directorate general of tax, however, reportedly claimed that the tax increase was based on the administration's proposal that had already been publicized.

The property tax increased automatically after the government increased the value of taxed objects because the calculation of the property tax is based on the value of the object.

Separately, when contacted about the hike of the value of taxed objects, a number of tax officials refused to comment. They said that the only official allowed to talk to the media were those on echelon II and above.

"We were ordered not to speak to reporters because the central tax office wanted 'one voice' on this matter. It was caused by yesterday's news reports by the media, which put us in an unfavorable position", said Tarmizi, head of the assessment section at the South Jakarta tax office.