Jakarta to Raise Tax on Parking Fee, Groundwater



Petir Garda Bhwana

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  • TEMPO.CO, JakartaJakarta provincial administration was determined to increase the tax of several sectors this year in a bid to boost the tax revenue, said the city’s secretary of the revenue agency Pilar Hendrani.

    “[We ensure] to continue the process of the tax adjustment proposed by the government in 2020,” said Pilar in a written statement on Wednesday, February 19. The adjustment, he added, would not contradict the omnibus law on taxation if it is later issued.

    The city administration would revise three regional regulations (Perda), viz. No. 18/2010 on the building and land acquisition tax (BPHTB), No. 15/2010 on street lighting tax, and No. 16/2010 on parking fee tax.

    Additionally, three gubernatorial policies on taxation would subject to amendments, such as the off-street parking fee tariff based on the time and place zones, billboard rental tariffs and the use of LED billboards in tight-controlled zones, and the taxable value of property (NJOP) for lands and buildings.

    The tariff of groundwater tax would also be tapped as a progressive tax in a bid to control the consumption of groundwater so as to maintain the seawater intrusion in the capital city. 

    “People and companies are expected to be wise on electricity consumption,” Pilar remarked.

    Meanwhile, the tax adjustment on the parking fee was aimed at reducing traffic congestion and entice Jakartans to use mass transportation as the government’s effort to curb air pollution and build an eco-friendly city.