Forums and Chat for Indonesia's English-speaking community
Who's Online
0 registered (), 173 Guests and 3 Spiders online.
JakChat on Facebook
Keep up with JakChat
through Facebook!
December
M Tu W Th F Sa Su
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
Weather
Jakarta temperature now.
Sun Rise/Set:
5:27/17:53
Moon Rise/Set:
16:08/3:31
Top Posters
KuKuKaChu 10790
Dilli 8044
Piss Salon 4039
Roy's Hair 3974
juminten 3870
Jokie Jokie Girl 2552
Marmalade 2471
chewwyUK 2392
kenyeung 2374
Vulgarian 2369
Forum Stats
5101 Members
17 Forums
13366 Topics
105283 Posts
Max Online: 841 @04 Apr 08 15:38
ZenQuote
The aim of a joke is not to degrade the human being but to remind him that he is already degraded.
George Orwell
Urban Dictionary
Word of the Day
baby in the closet
When a woman is pregnant and is keeping it a secret.
Don't tell anybody, but I swear Elena's got a baby in the closet.
Topic Options
Rate This Topic
#31980 - 13 Apr 06 15:35 JP/New law to bring issuance of local taxes into line
biznews Moderator Offline
Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
New law to bring issuance of local taxes into line

Urip Hudiono, The Jakarta Post, Jakarta

The government, in another effort to improve the country's investment climate, has completed a new bill prohibiting regions from arbitrarily imposing local taxes.

The draft regional tax and user charges law, which was submitted to the House of Representatives for deliberation last month, also strictly regulates existing local taxes, particularly on their maximum rates.

"The law is expected to close any loopholes for regions to issue other `problematic' taxes," head of the Finance Ministry's Economic, Financial and International Collaboration Studies Agency (Bapekki), Anggito Abimanyu, said Wednesday.

"We therefore expect it to help improve the investment climate as well, because we know such taxes have been the main discouragement for investors."

Anggito explained that local administrations would no longer be able to impose local taxes or user charges without providing the legal basis for them through related local regulations.

The regulations must be submitted to both the Finance Ministry and Home Ministry for review and approval, with the central government having the right to impose sanctions on local administrations refusing to revoke taxes deemed unfit or with higher rates than the new law allows.

"Sanctions will be related to a region's general allocation funds," Anggito said, referring to the funds allocated to local administrations from the central government's annual state budget.

Anggito said the bill also would try to strike a balance in maintaining adequate local revenue for the regions, with high revenue-generating taxes on motor vehicles and street lighting still allowed.

"A new environmental tax also will be introduced, while certain taxes, such as the underground water tax, will be delegated from the provinces to regencies and city administrations," he said.

According to a draft of the law obtained by The Jakarta Post, the tax on automobiles will be reduced from the current 5 percent to between 1-3 percent, with items of trains and heavy equipment, among others, exempt from taxes. The underground water tax is set at a maximum 20 percent and the environment tax at 0.5 percent of production costs.

The Home Ministry revoked last month 537 out of a 5,054 local regulations submitted for review by the Finance Ministry. The total regulation reviewed is, however, still only 37 percent of the 13,520 regulations issued by 30 provinces and 370 regencies throughout the country.

The business community has long complained about local taxes and user charges imposed on them after the introduction of the autonomy law in 1999, which has fueled a high-cost economy.

The World Bank's recent Doing Business in 2006 report puts legal uncertainty resulting from regional autonomy -- including a surfeit of local taxes and user charges -- among the top factors discouraging investors.

The central government also faced difficulties in setting a time frame to review and annul controversial bylaws deemed controversial.
_________________________
Jawawa.net: Indonesian Business and Investment News Aggregator

Top
Promotion
Ubuntu: Linux for Human Beings
#31981 - 13 Apr 06 16:07 Re: JP/New law to bring issuance of local taxes into line
g00f13 Offline
Member*

Registered: 12 Nov 05
Posts: 739
Loc: earth
No new taxes!

Wow, this govt. actually keeps their promise.

Top
#31982 - 15 Apr 06 18:43 Re: JP/New law to bring issuance of local taxes into line
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
of course there are no new taxes! they are stuggling to convince people to pay the taxes that have already legislated! 1.5% of indonesia's population have tax numbers -- meaning they have to report their tax annually and pay income tax --and of this 1.5% only 54% actually report. And the 54% very rarely report their actual income ...

new taxes? ha! no one would care even if they did introduce new ones!
_________________________
KuKuKaChu: dangerously too sophisticated

Top


Moderator:  biznews, NetCop 
Shout Box

JakChat supports:
Okusi Associates: Indonesian Business & Management Services
Jawawa.id: Indonesian Business News
Ubuntu Indonesia
Living in Indonesia Information Website