The implementation of the amendment to the regional tax and levy law (PDRD) is predicted to increase the contribution of pure regional income (PAD) up to ten percent to the regional budget of revenue and expenditure, Bisnis Indonesia Daily reported on Tuesday. (*)
Speaker of the Ad Hoc Committee for the Amendment to PDRD Law Harru Azhar Azis said that the increase in the pure regional income would reduce the burden of the state expenditure in the state budget, which must be allocated to regions through transfer funds.
“The amendment contains an increase in tax rates and addition to objects of new taxes so as to drive up PAD and reduce expenditure in the state budget,” he said, adding that contribution of the increase in PAD to regional budget in every regency/city may increase by 15% - 20% from 5% - 10% and the increase is estimated at 50% - 55% in the provincial level.
In the Regional Tax and Levy Bill (RUU PDRD), the government and House of Representatives (DPR) have agreed to stipulate four new taxes for regions next year, namely rural and urban land and building tax, land and building title acquisition fee, swallow nest tax and cigarette tax.
In addition, the government also stipulates four new regional levies, namely levy on calibration/re-calibration service, levy on educational service, levy on telecommunications tower controlling and levy on fishery business license. (*)