'Tax management lacks transparency'
The city administration was unable to spend Rp 2.1 trillion of the Rp 9.7 trillion 2002 city budget on projects that would have benefited the public. Yet, it is planning to increase the 2003 budget to Rp 10.6 trillion. The administration has also increased vehicle taxation by 50 percent, meaning that people now have to pay 1.5 percent of the vehicle's market price. The Jakarta Post talked to some people on the street about the tax hike.
Chris, 46, works at a foundation and lives in Cinere, South Jakarta, with his wife and two children:
The vehicle tax hike really makes me angry. I wonder what the increase is for.
It's not the amount of the increase that matters, but the tax management, which is never transparent and is prone to irregularities.
As a city resident, I have been trying to be a good taxpayer. I believe that some of the taxes are allocated for the payment of the city government officials.
We pay them, but in turn what do they give to us? The city administration is overstaffed. Worse still, the staff perform their duties very poorly.
Why should we pay such lazy and unproductive officials, then? The people's right to obtain good service is never fulfilled.
Should tax management be transparent and city development planning be realistic, I would not have such a strong objection.
More than Rp 2 trillion from the 2002 city budget remains unspent as officials failed to manage it in the public interest. It clearly shows how poor their performance is.
Gareng, 30, is a motorist who resides in Duren Sawit, East Jakarta. He is working for an international organization in Kuningan, South Jakarta:
I personally object to the city administration's policy to increase the vehicle tax. It should have been imposed only on the middle class, who have private cars.
People on low incomes who ride motor cycles in an effort to minimize their transportation costs find it even tougher these days to make money. Why should they bear that additional burden? It's really unfair, I think.
I believe that the city administration has generated so much money from tax, including vehicle taxes, which could have been managed better to improve city residents' welfare.
I feel skeptical about city tax expenditure. Tax management and the budget allocation are not transparent at all. How could I feel that the public has its rights fulfilled after paying taxes?
I guess it'll be better for the city administration to manage the city budget properly so as not to increase taxes.
The most important thing is that the public should get the benefit for being taxpayers.
So far the public has only benefited from infrastructure improvements such as good thoroughfares across the city. But, that's not enough.
Gendon, 45, is a taxi driver who lives with his wife and seven children in Serpong:
I don't have a motorcycle or car at home. But the vehicle tax increase will affect drivers like us.
At least, the taxi owner will try to raise the daily rent fee. It will be really tough on low-income people like me. Did you know that during Ramadhan most taxi drivers complain about reduced income as there are fewer and fewer passengers? Besides, there are many new taxi companies, which makes for tougher competition between taxi drivers generally.
The government always forces us to pay taxes despite hardships caused by the hike in the price of various items. But, on the other hand, what have we got that we deserve as taxpayers? Nothing.
Tax allocation and management are always questionable. So, it's nothing unusual for the public to object to the hike.
It would be better to overhaul the economic system in a bid to improve people's purchasing power rather than increasing taxes.
-- Leo Wahyudi S