JAKARTA. The Provincial Government has finally released provisions related to the imposition of local taxes which are mandated by Law (UU) Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).
The provision in question is DKI Jakarta Provincial Regulation Number 1 of 2024 which is effective since it was promulgated on 5 January 2024.
There are ten types of local taxes stipulated in the regulation, including the one that is currently being discussed, tax on entertainment services, which is 40% in accordance with the HKPD Law.
In general, the ten types of local taxes regulated include Motor Vehicle Tax (PKB), transfer of motor vehicle fee (BBNKB), Heavy Equipment Tax (PAB), the Motor Vehicle Fuel Tax (PBBKB), Cigarette Tax, Rural and Urban Land and Building Tax (PBB-P2), Fees for Acquisition of Rights on Land and Building (BPHTB), Specific Goods and Services Tax (PBJT), Groundwater and Billboard Tax(PAT).
Specifically, PBJT is grouped into three other taxes, namely taxes on electricity, hotel services, parking services and arts and entertainment services. The following is a list of overall local tax rates in this regulation.
In addition to regulating the amount of tariffs, this regulation also further regulates the implementation of determining the basis of imposition, when payable, and the tax collection area, to complement the existing arrangements in the Law.
Then in its explanation, this regulation is also issued to resolve the issue of the gap between the tax burden and the ability to pay taxes. This gap is considered to often arise in objective tax collection or Poor Cash Taxpayer problems.
To find out more details about this information, please contact us, through the chat service available on the MUC Consulting website. In addition, for your information, MUC Consulting is a globally reputable tax consulting firm located in Jakarta and Surabaya.