Billboard Tax Implementation Guidelines Pergub will Be Revised

Jakarta Provincial Governor planned to revise Governor Regulation (Pergub) no. 244/2015 about Billboard Tax Implementation Guidelines. One of the revised points is about billboard tax incentive application for light emitting diode (LED) type.

LED billboards interest is still low

According to Jakarta Taxes and Levies Board (BPRD) Head, Edi Sumantri, revision will be made to attract billboards businessmen and building owners thus want to switch to LED billboards. Therefore, from 2017, billboard permission will not be renewed.

"LED billboards interest is still low. Besides construction and maintenance costs are higher, the tax amount also become problem," he said on Monday (4/10).

This Year's Local Revenue Expected to Hit Target

He gave tax amount illustration for 100 meters advertising billboard is about Rp 2.2 billion, while LED billboard with the same size could reach Rp 4.9 billion. Thus, Pergub No.244/2015 will be revised by giving incentive for LED billboard use.  

Among the revisions is contained about 30 percent incentive for LED billboard user who publish central and local government socialization programs. Then, giving tax deduction by 30 percent from 70 percent of advertisement billboard tax that indebted for the first year.

Furthermore, it would also be regulated 20 percent tax deduction from 70 percent indebted advertisement billboard tax for the second year and 10 percent for the third year.

Moreover, advertisement billboard vendor could also use space by 30 percent of central and local government allocation as long as not have been used.

"With giving incentive, calculation tax for LED billboard with 100 square meters could reach around Rp 2.3 billion," he closed.