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Jakarta Post

Jakarta intensifies groundwater tax collection efforts

  • Sausan Atika

    The Jakarta Post

Jakarta   /   Fri, January 25, 2019   /   10:04 am
Jakarta intensifies groundwater tax collection efforts Vehicles pass through Jl. MH Thamrin, one of the main thoroughfares in the capital. (Shutterstock/File)

The Jakarta Tax and Levy Agency is intensifying its efforts in collecting groundwater tax from business entities, an official has said.  

The agency's acting head, Faisal Syafruddin, told reporters on Wednesday that the agency had teamed up with the Jakarta Industry and Energy Agency to collect more groundwater tax by improving data recording methods and conducting inspections at any business entities found in the field.

“Our target is new facilities. For instance, with the construction of new buildings. [...] They [taxpayers] have to pay taxes based on the amount of groundwater used during the construction,” he said at the agency office.

“Also, we are combing business activities [that use groundwater], such as laundry and car wash services."

Faisal expressed hope that the improved data registration and inspection methods would increase the amount of groundwater tax collected, which was Rp 145 billion (US$9.83 million) last year. The agency hopes to collect the same amount of groundwater tax this year.

Considered to be a gradually sinking city, the capital is facing a tremendous challenge in tackling land subsidence, with the city reportedly sinking 3 to 18 centimeters every year. Groundwater extraction is seen as a major factor behind this issue.

Hence, the city administration is set to also step up measures to mitigate land subsidence by reinforcing its monitoring of groundwater extraction. (gis)