Two new bylaws on taxes implemented

JAKARTA (JP): The city administration enacted on Thursday two bylaws on entertainment tax and hotel and restaurant tax, which were postponed last year due to the economic crisis, an official said.

"The bylaws, which were passed last year, are effective today (Thursday)," head of the city's revenue office Deden Supriadi said at City Hall.

Deden said Bylaw No. 7/1998 on entertainment tax targeted venues including cinemas, massage parlors, steam bath establishments and discotheques. Golf clubs, health and swimming centers were excluded from the new entertainment tax bylaw.

"We expect to collect Rp 36 billion (US$5.2 million) in taxes from the entertainment spots this year," he said.

The city administration secured Rp 40.3 billion from the entertainment tax last year.

Deden said the drop in this year's projected income from entertainment tax was because the tax for cinemas was reduced from 35 percent to 10 percent.

"The reduction in cinema taxes will cut the city's income to Rp 9.13 billion," he said.

However, taxes for massage parlors, steam bath establishments, karaoke bars and discotheques were doubled from 15 percent to 30 percent, he said.

Deden said the administration collected Rp 276 billion in hotel and restaurant taxes last year.

"We are expecting to collect Rp 266 billion in hotel and restaurant taxes this year."

He said the income from hotel and restaurant taxes would decrease because some taxed businesses, including catering businesses and small restaurants were excluded in Bylaw No. 9/1998 on hotel and restaurant taxes.

The taxes for hotels and restaurants in the new bylaw would be maintained at 10 percent, the same figure regulated in the previous bylaw, he said. (jun)