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Jakarta to block bank accounts of tax evaders, put them under temporary arrest
The Jakarta tax board is looking for payment of trillions of rupiah in tax arrears, most of which comes from unpaid vehicle-related taxes.
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Motorists cross at the Sarinah intersection, Jakarta, in this file photo. Unpaid vehicle taxes have become the largest contributor to the city's tax arrears. (JP/Wendra Ajistyatama )
W
ith trillions of rupiah in tax arrears, the Jakarta administration is planning to implement stronger measures against evaders next year. At worst, tax officials can order the blocking of bank accounts and temporary arrest of violators.
The Jakarta Tax and Levy Board (BPRD Jakarta) has revealed a plan to carry out stronger law enforcement in 2020 as it is looking for payment of trillions of rupiah in tax arrears, most of which comes from unpaid vehicle-related taxes.
Owed tax from vehicle owners had reached Rp 2.4 trillion as of Monday, with Rp 1.6 trillion from two- and three-wheeled vehicles while the remainder from four-wheelers.
This year, the tax board is targeting to collect tax revenue of Rp 44.2 trillion [US$3.09 billion], a 17.5 percent increase compared to last year's Rp 38.1 trillion. The tax board said it had collected Rp 27.7 trillion.
The administration received Rp 37.5 trillion in tax revenues last year, or 98.4 percent of the target at that time.
“In 2020, we will enforce the law massively in cooperation with the Jakarta Police traffic unit, the Corruption Eradication Commission [KPK], prosecutors office, and other institutions supporting tax collection,” the board head Faisal Syafruddin said at City Hall.
He explained the types of "massive" law enforcement would comprise those already being carried out like plastering stickers on taxable objects, going door-to-door issuing warnings to residents, and sending bailiffs to collect tax based on a distress warrant.
