TEMPO.CO, Jakarta - Jakarta Deputy Governor Ahmad Riza Patria acknowledged that the capital would see a reduction in regional income in line with the implementation of the policy on the urban and rural land and building tax exemptions. However, he stopped short of detailing the number.

“There will obviously be a reduction in income but it is not commensurate with the benefits we can provide,” said Riza at City Hall, Central Jakarta, Tuesday, June 14, 2022.

He added that the city administration is not a profit-seeking organization but tasked to assist and serve the community.

The Jakarta government granted fiscal incentives for the 2013-2022 tax payments by exempting the land and building tax on individuals with land assets worth less than Rp2 billion in taxable value of the property (NJOP). This is stipulated in Governor’s Regulation No. 23/2022.

Previously, the chairman of the PKB-PPP faction of the Jakarta Legislative Council (Jakarta DPRD), Hasbiallah Ilyas, questioned Anies Baswedan’s policy on tax exemptions. He opined that the incentive would benefit middle-class people. He also worried that regional income would drop when the economy begins to grow.

Riza Patria further explained that the loss of income after the implementation of the tax exemptions would be covered by other sources of income. “There are many other sources,” said the Gerindra Party politician.

LANI DIANA WIJAYA

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