Abolition Of Fines And Reduction Of Tax Base Due To PSBB

JAKARTA - The Provincial Government (Pemprov) of DKI Jakarta has issued a policy of eliminating fines or administrative sanctions for arrears in all types of taxes. This policy was issued as an incentive to the public during the COVID-19 pandemic.

Acting Head of DKI Jakarta Regional Revenue Agency (Bapenda) Edi Sumantri said that the implementation of this policy will last for about two months, starting from April 3 to May 29.

One type of tax penalty that was eliminated was Land and Building Tax (PBB). Arrears will not be asked to pay a fine even though it has been years. In addition, the cost of tax base in 2020 will be the same as the previous year.

"PBB-P2 in 2020 is determined to be the same as in 2019 or there is no increase in PBB-P2 payments. In addition, for the arrears of previous years, administrative sanctions are also removed," said Edi in his statement, Friday, April 24.

In implementing this policy, said Edi, Jakarta residents will not be complicated by terms or conditions. This is because this policy has been automatically entered into the system. So, taxpayers will not be subject to sanctions or fines if they pay the tax base until May 29, 2020.

"This Pergub is implemented automatically into the system so that taxpayers do not need to apply for this facility," said Edi.

The policy of eliminating fines is contained in the Governor Regulation (Pergub) Number 36 of 2020 concerning the Elimination of Regional Tax Administration Sanctions During the COVID-19 Disaster Emergency Response Status.

However, the period of implementing this policy can be evaluated at any time following the implementation of the COVID-19 emergency response status.

Then, the DKI Jakarta Provincial Government also issued a policy regarding the reduction of regional tax base which prioritized business actors affected by the implementation of the PSBB. This policy is contained in the Governor Regulation (Pergub) Number 33 of 2020 concerning the Implementation of Large-Scale Social Restrictions in Handling Corono Virus Disease 2019 (COVID-19).

Several types of taxes that are possible to be reduced, namely Land and Building Tax (PBB-P2), Motor Vehicle Tax (PKB), Transfer of Motor Vehicle Title Fee (BBN KB), Fees for Acquiring Rights on Land and Building (BPHTB), Hotel Tax, Restaurant Tax, Entertainment Tax, Parking Tax, Advertising Tax, Ground Water Tax and Motor Vehicle Fuel Tax (PBB KB).

"This policy is expected to ease the burden on society in carrying out its tax obligations which have been delayed due to the COVID-19 outbreak and increase overall regional tax revenue," said Edi.