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View all search resultsPati regent scraps 250 percent property tax hike following viral backlash
The tax hike policy received widespread protest from residents once it was made public in June, with many residents accusing Sudewo of being out of touch for implementing such a steep increase amid a nationwide economic slowdown.
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Officers help taxpayers fill out the Annual Tax Returns reporting form on Nov. 3, 2020, at the Directorate General of Taxes, Sudirman Building, Jakarta. (JP/Dhoni Setiawan)
P
ati Regent Sudewo has announced the cancellation of a controversial 250 percent hike in land and building tax rates in the regency, following widespread public backlash that went viral and attracted national attention.
Sudewo said the decision was made to restore a safe and stable situation in Pati, Central Java, and to accommodate the “aspirations of the public.”
“The tax rate will revert to the 2024 level, and we will refund any excess payments made under the increased rate,” he said on Friday, as quoted by Kompas.com.
Sudewo introduced the significant property tax hike in May, just two months after assuming office as Pati regent.
He justified the move by noting that the regency’s property tax rate had not been revised since 2011, despite regulations requiring local governments to adjust rates at least once every three years.
Sudewo argued that if the government had consistently raised property taxes over the past 14 years, the rate would have increased by as much as 1,500 percent. However, he said the regional administration chose to raise it by “only” 250 percent.
He also pointed out that land and building tax revenue in Pati amounted to just Rp 36 billion annually, significantly lower than in neighboring, smaller regencies. For comparison, Rembang and Kudus each collect around Rp 50 billion in property taxes per year.
