Jakarta city administration to improve online tax system


The Jakarta Post, Jakarta | Jakarta | Wed, July 24 2013, 2:59 PM

The Jakarta city administration has said that it is planning to improve its online tax system to boost tax payer numbers.

According to Jakarta Deputy Governor Basuki “Ahok” Tjahaja Purnama, the current system is still prone to abuse by officials.

He added that that many businessmen had changed the taxation system in their offices from online to offline to disable tracking.

As a result, the current system is only able to reach 1,780 out of 10,900 eligible tax payers as of July 2013.

“We have warned officials. If any of them are found abusing the system, we will fire them,” Ahok said Tuesday in Jakarta as quoted by kontan.co.id.

Jakarta tax office head Iwan Setiawandi said that currently, around 60 percent out of all companies operating in Jakarta still used an offline cash management system that was incompatible with the online system.

“Companies are reluctant to change to the online system because it enables easy access to their financial activities,” Iwan said.

To solve the problem, according Iwan, the administration will conduct background checks on every tax payer. Also, he added, the city administration would be strict on businessmen who want to request new permits to implement an online system in their offices. Otherwise, the permits would not be issued, he went on. (hrl)

SOURCE Writer: Haeril Halim, cub reporter at the Jakarta Post

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