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Jakarta to Collect Rp5.4tn Tax Debts

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23 February 2017 10:18 WIB

Taxpayers at the Tax Directorate General's central office in Jakarta on September 30, 2016. Tempo/Tony Hartawan

TEMPO.CO, Jakarta - Jakarta administration will collect Rp5.4 trillion tax debts. “Confiscated taxable objects will be auctioned,” the city’s Tax and Retribution Agency director Edi Sumantri said yesterday.

Edi elaborated that land and building tax makes up the most of the tax arrears at Rp2 trillion. The rest are vehicle taxes and deductions for businesses, such as restaurant taxes, hotel taxes and entertainment venue taxes.

The Tax Agency will prioritize tax collection from taxpayers who owe over Rp1 billion tax arrears. Three tax warrants will first be served. Failing to heed the warrants, taxpayers will have their taxable objects confiscated.

Edi said that the Tax Agency will collect the data on Jakarta taxpayers. Citizen identity number, ownerships of land, vehicles, and other assets, as well as tax payment history will be integrated into the One-Stop Integrated Services Agency.

A clean tax payment history will help businesses to secure permits. “Those who have tax arrears will not be granted permits,” Edi said.

Jakarta Deputy Governor Djarot Saiful Hidayat said that 3.2 million taxpayers have yet to pay motorcycle tax and 600,000 taxpayers have yet to pay car tax.

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