TEMPO.CO, Jakarta - The closure of several all night-time entertainment venues across Jakarta is reportedly one of the factors the city failed to reach the tax revenue target in 2018. Those entertainment places were shut off due to practices of drug distribution and pornography.
Jakarta Tax and Retribution Agency (BPRD) head Faisal Syafruddin added that many entertainment spots moved the operation to the support cities of Jakarta.
“[Because of] the relocation of several big entertainment venues outside Jakarta, such as Sentul, BSD, to Bali. We do not have a representative place to hold big events,” said Faisal to Tempo, Jakarta, Wednesday, September 18.
He added that the compliance rate of taxpayers was also low.
The entertainment tax is one of the tax sources that were below the target in 2018. The city collects tax from 13 resources.
For entertainment tax, last year's realization amounted to Rp834.52 billion or 92.73 percent from the target of Rp900 billion. However, the city’s tax revenue in 2018 was recorded at Rp37.53 trillion, up from the previous year’s Rp36.51 trillion.
Albeit the existence of several factors that will likely reduce tax revenue, such as the closure of night entertainment venues, the BPRD targeted to collect Rp44.180 trillion this year. “So far, it has amounted to some Rp30 trillion. This is a remarkable achievement and the hike is quite significant,” Faisal concluded.