Jakarta Government Extends Provision of Fiscal Incentive

Jakarta Government has extended provision of fiscal incentives for mandatory retribution payers affected by the ongoing COVID-19 pandemic.

This policy aims to help reduce the burden of paying fixed costs and retribution fees during COVID-19 pandemic

This policy was mentioned in Governor Regulation No. 87/2021 on Granting Relief for Regional Retribution and/or Abolition of Administrative Sanctions in form of Late Payment of Interest for Retribution Payers Affected by COVID-19 Outbreak.

Jakarta Regional Revenue Agency (Bapenda) Head, Lusiana Herawati conveyed, in 2020, Jakarta Government had also issued incentive policy through Governor Regulation No. 61/2020 on Granting Relief for Regional Retribution and/or Abolition of Administrative Sanctions to Retribution Payers Affected by COVID-19 National Disaster.

Regional Tax Revenue in East Jakarta Reaches 65.88 Percent

"Along with two years of emergence of COVID-19 pandemic which damaged country's economic foundation, Jakarta is no exception, the Jakarta Government has taken quick steps by issuing regional fiscal incentive regulation in order to restore the economy," she stated, Monday (11/22).

According to her, fiscal incentive was given to retribution payers to ease the burden of paying retribution due to the impact of COVID-19 pandemic.

"This policy aims to help reduce the burden of paying fixed costs and retribution fees during COVID-19 pandemic," she said.

According to her, people who have paid retribution before enactment of Governor Regulation No. 87/2021 will be compensated in the next payment obligation period in accordance with applicable regulation.

"This fiscal incentive is given automatically through system in the regional retribution collection agency (OPD)," she added.

She assessed that regional revenues, one of which was from retribution fees, were greatly affected by COVID-19 pandemic.

"In 2021, revenue from retribution as of November 16 only reached 44.18 percent of target Rp 755,755,000,000," she asserted.

For information, here are some retribution incentives listed in Attachment to Governor Regulation No. 87/2021:

• Cemetery Land Lease Fee for Three Years Period (General Service category) is given 100 percent relief and abolition of administrative sanction in form of late payment of interest.

• Motor Vehicle Testing Fee for Public Vehicle (General Service category) is given abolition of administrative sanction in form of late payment of interest.

• Store Waste Transport Fee and the like (General Service category) is given abolition of administrative sanction in form of late payment of interest.

• Motor Vehicle Testing Fee for Taxi Base Usage (General Service category) is given 50 percent relief and abolition of administrative sanction in form of late payment of interest.

• Retribution Fee for Use of Processed Food Kiosk (General Service category) is given 100 percent relief and abolition of administrative sanction in form of late payment of interest.

• Retribution Fee for Use of Business Places at SME Facility Location (General Service category) is given 100 percent relief and abolition of administrative sanction in form of late payment of interest.