Two new tax bylaws enacted

Two new tax bylaws enacted

JAKARTA (JP): The city council enacted two bylaws yesterday on
taxes on underground water and surface water, and on hotels and
restaurants.

Council speaker Edy Waluyo said that besides allowing the city
to collect more money, the bylaw on the implementation and use of
underground water and surface water was also aimed at preserving
the environment.

"The bylaw includes a regulation on mechanisms to grant
permits on the use of underground water and surface water. We
hope that through the enactment there will no more excessive use
of the water which will then result in damage to the
environment," he said.

The taxes on hotels and restaurants, previously stated in
separate bylaws, was combined in the new bylaw, which still
regulates that restaurants with an annual turnover of more than
Rp 30 million (US$2,150) and hotels in the capital are subject to
the 10 percent tax.

Under the new bylaw on water usage, individuals and
institutions using more than 50 cubic meters of either
underground water or surface water (such as rivers and lakes) are
subject to a 20 percent tax.

The bylaw, however, does not disclose further details.

According to councilor Lukman Mokoginta of Commission D for
development affairs, the tax would be based on the basic water
tariff charged by the city-owned water management company PDAM
Jaya.

PDAM Jaya is currently studying the possibility of decreasing
its tariffs as many people have strongly complained about the
recent hike.

Previously the administration only charged levies for
underground water usage.

According to the bylaw, water used by government and city
administration institutions is not subject to the tax. (ind)