Banten will not tax ‘warteg’

While the Jakarta administration mulls imposing a 10 percent tax on low-cost food stalls known as warteg, Banten Governor Ratu Atut Chosiyah said Banten will not impose such a tax.

“We have no plan to impose a tax on food stalls like what Jakarta has planned, because conditions in Jakarta and Banten are different,” Atut said Thursday.

According to its first-ever female governor, the Banten provincial administration would let the administrations of the eight regions in the province decide whether or not to impose the tax on warteg.

However, she said the provincial administration believed there was no need to collect taxes from wartegs, but each regency and municipality in the province had their own ordinances so she left it up to the regents and mayors to determine.

Banten consists of four regencies, Tangerang, Serang, Pandeglang and Lebak, and four municipalities, South Tangerang, Tangerang, Serang and Cilegon.

Tangerang Mayor Wahidin Halim also said he disagreed with the Jakarta plan to impose a 10 percent tax on wartegs, estimated to bring in revenue of more than Rp 60 million (USD$6,660) a year for the city.

“I personally disagree with the Jakarta ordinance on warteg. An ordinance created by administrations should not burden residents,” Wahidin said.