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)