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Jakarta to go for stricter enforcement as it fails to meet tax target
The Jakarta Tax and Levy Agency (BPRD) expects to collect Rp 40 trillion (US$2.8 billion) in tax revenues this year, 6.5 percent higher than last year but this figure is actually only 90 percent of the city's initial target of collecting Rp 44.5 trillion.
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Tax compliance: A number of taxpayers file their returns with the Jakarta Tax Office in Tanah Abang, Central Jakarta. (JP/Nurhayati)
T
he Jakarta administration has blamed the country's sluggish economy for its failure to meet its tax revenue target this year and will impose stricter law enforcement measures to improve collection next year.
The Jakarta Tax and Levy Agency (BPRD) expects to collect Rp 40 trillion (US$2.8 billion) in tax revenues this year, 6.5 percent higher than last year but this figure is actually only 90 percent of the city's initial target of collecting Rp 44.5 trillion.
The agency recorded Rp 39.9 trillion, 89.6 percent of its target, of tax revenues, as of Friday.
It collected Rp 37.55 trillion in tax revenues out of the Rp 38.125 trillion target last year.
“We believe that we won't achieve the tax revenue target due to the sluggish economy caused by external factors. We expect to collect around Rp 40 trillion by year-end,” city secretary Saefullah said on Friday.
Among 13 taxes collected, BPRD spokesperson Mulyo said the property transfer fee (BPHTB) revenues scored the lowest at 59.9 percent, Rp 5.6 trillion of the agency’s Rp 9 trillion target, on the back of the sluggish property market this year.
However, the agency is confident that tax collection for groundwater, entertainment, restaurant, street lighting, parking and billboards have exceeded their target, especially for the groundwater tax, which stood out among the others, he said.
