Wednesday, 3 July 2013

175 REGIONS NOT PREPARING LAND & BUILDING TAX REGULATIONS



Transfer of management of Lend and Building Benefit Tax (BPHTB) and Land and Building Tax of Rural and Urban Areas (PBB-P2) from the Central Government to Regional Governments was a form of follow up of execution of regional autonomy and fis­cal decentralization. The policy pattern was specified in Law no. 28 year 2009 on Regional Tax and Retribution. By this management transfer, activities of data compiling, evaluation, administration, collection and billing and service of PBB-P2 were exercised by the regional government.

Hartoyo, Director of Extension and Apprais­al, Director General of Tax Dept steed in Jakarta on Monday (11/2/2013) that by this Transfer PBB-P2 and PBHTB would be fully included in the regency/city government whereby they were expected to in­crease their original income (PAD). Hartoyo showed as an example when PBB-P2 was Governed by the Central Government, the local Government only had a share of 64.8 % while from BPHTB only had 64%. “After this transfer, all income from the PBB-P2 sec­tor would enter regional cash box”. Hertoyc said.

Based on Law no 2812009 transfer of BPHTB management, transfer of management was exercised as per January 1, 2011 and transfer of management of PBB-P2 to all regencies/cities was January 1, 2014. He said that Surabaya wee the first city which took over management of PBB-P2. Hence the Surabaya Municipality was a pilot project for the execution of transfer management of the PBB-P2 sector. Hartoyo was expecting that the Surabaya Municipality in man­ning the PBB-P2 sector could serve as example and reference for other regencies and cities.

Meanwhile in regard to regional readiness Hartoya mentioned of 369 regencies/cities which had not exercised PBB collection, only 52.6% or 194 re­gions which had not prepared Regional Regulations (Perda) PSB-P2. He disclosed that the 194 provinces were ready to collect PBB-P2 taxes for themselves in 2014. So far, only 175 provinces had not prepared PBB-P2 Regulations. He believed that late actions to implement PBB-P2 in the regions was due to dyna­mism in Parliament.

Hertoyo stated that up to early this year the number of provinces having already collected PBB-P2 came to 123 regions with total potential regional income of Rp 6.5 trillion. The total potential of income to 369 regions which had not collected PBB-P2 was Rp 1.5 trillion. The 369 regions included region which had prepared Regional Regulations but had not made any collection (194 regions) and Regions not prepar­ing Perda numbered 175 provinces.

According to Hartoyo, transfer of PBB-P2 management to the regions was the Government’s effort to implement fiscal decentralization while in­creasing regional income. Her rated that regions which were not ready to take over management of PBB-P2 and BPHTP by end of 2013 had the potential of losing one of the PAD taxes because by that time the Central Government no longer make collection of the two taxes. Therefore toward full implementation of PBB-P2 and BPHTP management take over, provincial governments were demanded to prepare them­selves to undertake the task.

Hartoyo said that the Directorate General of Tax sets target for 2014 that all regencies/cities could directly collect PBB-P2. The Directorate General of Tax only assisted transformation process for the first year. He explained that the authority delegated to local Governments included data compilation of tax subject and object, stipulation of size of tax due until invoicing and control of payments. Haryoto added on that the Regional Government must inform the Ministry of Finance and Ministry of Internal Affairs not later than June 30, 2013 if tax was collected before January 2014.


Business News - February 15,2013




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