Revenue on 4 Tax Sectors Failed to Achieve Target

Revenue from the four tax sectors in Jakarta last year is unfortunately not reaching the target. These four tax sectors are Motor Vehicle Fuel Tax, Groundwater Tax, Entertainment Tax and Land and Building Taxes in village/city.

If the hike price on fuel is set at the end of the year, the PBB-KB revenue will be realized amounting to Rp 1.17 trillion, with an estimated average per month in the amount of Rp 97.67 billion or 106.55 percent of the PBB-KB revenue by Rp 1,1 trillion

Acting Jakarta Governor, Basuki 'Ahok' T Purnama disclosed failure to achieve the revenue target of Motor Vehicle Fuel Tax (PBB-KB) last yea is due to hike price on fuel at the beginning of the year. Yet, the central government had set it in mid-2013. The increased deposit on PBB-KB began to increase from August-December.

"If the hike price on fuel is set at the end of the year, the PBB-KB revenue will be realized amounting to Rp 1.17 trillion, with an estimated average per month in the amount of Rp 97.67 billion or 106.55 percent of the PBB-KB revenue by Rp 1,1 trillion," said Basuki, while delivering answers over the common view of Jakarta Legislative Council (DPRD) Fractions on Draft of the Bylaw On Accountability for Implementation of the 2013 City Budget (APBD) in City Council Building, Thursday (7/10).

West Jakarta Lacks of Tax Officers

He expressed PBB-KB payment and Local Tax Returns (SPTPD) reporting through motorcycle fuel supplier each month is not appropriate compared to fuel consumption. "Last year, the amount of PBB-KB revenue was Rp 1.027 trillion or 93.37 percent, where it is better than 2012 which reached Rp 882.55 billion or 88.26 percent and increased to Rp 144.55 billion or 16.38 percent," he expressed.

He explained that the Groundwater Tax (PAT) last year was not achieved because of there is Governor Regulation No.37/2009 on Water Acquisition, which aims to control groundwater usage and encourage the pipeline water usage, groundwater rate is higher than the rate of piped water (PDAM).

"As well as, groundwater management is conducted to control the usage of groundwater, and only used for backup when the water needs of the piping network (PAM) has not fulfilled or malfunctioned," he explained.  

He continued Jakarta Regional Environmental Management Agency (BPLHD) cooperates with PT Palyja and PT Aetra as business partners of PAM Jaya did a program of Zero Consumption, which is granting permit on groundwater usage in accordance with the consideration of groundwater and pipeline network conditions.

Based on the BPLHD's evaluation results, since 2007 until 2013, there is a decrease in the amount of groundwater consumption, followed by the increase in consumption of water from pipeline network.

  

"Compared to last year, the revenue of PAT 2013 tax is reaching Rp 79.97 percent, it's better than in 2012 which reached 60.03 percent," he expressed.

Basuki revealed failure to achieve the revenue target of entertainment tax is due to existence of entertainment taxpayer filed a a judicial review article 42 paragraph (2) of Law No.28/2009 on Regional Tax and Levy to the Constitutional Court. Thus, starting from the tax period in October 2012 until the end of 2013, the taxpayer does not meet the obligations due to waiting for a decision issued by the Court. Predictably, the potential loss happened to the entertainment tax revenue by Rp 18 billion.

Additionally, a number of entertainment taxpayers type cinema are closed temporarily or permanently thus it has a negative impact for the target of the entertainment tax. Then, raid against drug use held by Jakarta BNP in each nightclub affects to the visitor and its tax revenue from nightclub tax.

"Entertainment tax last year was decreasing to 6.53 percent than 2012. As well as revenue realization in 2012 reached Rp 368.72 billion, while 2013 reached Rp 393.26 billion," he told.

He asserted failure to achieve the revenue target of the PBB-P2 in 2013 is due to the tax object selling value (NJOP) using the database in 2012. Due to lots of tax data that have not been upgraded, has caused the PBB-P2 tax collection conducted in 2013 with database delegated from central government (Directorate General of Taxation).  

"As well as most of the taxpayers file objection and tax principal reduction as well as deletion of administration sanctions," uttered the former regent of East Belitung.

He added, such the 2013 PBB-P2 revenue has increased up to Rp 21.13 percent than 2012 where its data is still being managed by central government amounting to Rp 2.784 trillion. After being managed by Jakarta Provincial Government, its amount increased to Rp 3.372 trillion," he finished.