Jakarta, ID
Tuesday, May 29 2012, 08:31 AM

Headlines

Jakarta’s local tax revenues surge above 2010 target

A- A A+

The Jakarta administration says it collected more locally generated revenue (PAD) than it planned last year, raking in more than Rp 23.7 trillion (US$2.6 billion) in 2010.

The government collected 110 percent of its Rp 22.96 trillion revenue target for 2010, Jakarta’s Regional Financial Management Agency (BPKD) head Sukri Bey said on Wednesday.

Sukri declined to give details on the revenue collected.

Locally generated revenue is comprised of regional, retribution and wealth management taxes; shared taxes; and the central government’s General Allocation Fund and Special Allocation Fund.

Sukri said that the tax office was now able to collect all tax payments without requiring people to go to the Directorate General of Taxation’s offices.

“We promise an easier process for tax payment. At the tax collection office, citizens can submit tax money through city-owned Bank DKI,” he said.

“The administration will later verify the payments and transfer the money to the central government,” Sukri said on the sidelines of the launch of a integrated tax collection office, one of several new district offices opened across Jakarta to boost tax revenues and make tax submissions easier.

Jakarta Governor Fauzi Bowo launched on Wednesday tax collection offices in Tebet in South Jakarta, Cakung in East Jakarta, Pademangan in North Jakarta, and Cengkareng and Kebon Jeruk in West Jakarta.

The city wants to establish a total of 37 tax collection offices by February before establishing similar offices in each of Jakarta’s 42 districts.

Through the tax collection offices, citizens and businesses will be able to pay, among other things,  salary taxes, land and building taxes, hotel taxes, entertainment taxes, and vehicle-related taxes.

The city has set a target of collecting Rp 11.5 trillion in revenue from regional taxes this year, the bulk of which was expected to come from vehicle taxes.

The Jakarta Tax Agency said it expected to collect Rp 7.5 trillion from vehicle ownership transfer fees and vehicle ownership taxes.

The Jakarta administration said it expected that the largest contribution would come from the implementation of the new progressive vehicle taxation system, which has recently come into effect.