JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian appealed to regional heads to increase local revenue (PAD) from creative tax withdrawals.
This is a response from the discourse of Regent Pati Sudewo to increase the land and building tax (PBB) by 250 percent.
Tito assessed that one of the efforts to increase PAD is through creative ways, not even making policies that burden the community itself.
"Regarding PAD, we appeal to friends in the regions, PAD mainly comes from levy taxes. Then from grants and Regional Owned Enterprises (BUMD). Then PAD must be creative and innovative, but not burdensome for the community," Tito said at a press conference at the head office of the Directorate General of Taxes at the Ministry of Finance, Jakarta, Friday, August 15.
He also conveyed a number of creative efforts, such as reviving the ease of doing business, licensing, there are public malls that have been opened to make it easier for people to do business. According to Tito, many regions were successful because of these efforts.
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"In Bali, for example, the tourism sector, in the MSME sector Jogja. PAD is high because they are creative," he said. Then, Tito continued, there are other sectors such as the withdrawal of levy taxes from motorized vehicles. Furthermore, tax withdrawals from restaurants when they have made a profit.
"There are other sectors such as motorized vehicles. Parking that may still not be well collected. Well, it can be arranged to be optimized," explained Tito.
"We are given the ease of licensing first to open a restaurant, after that there will be levies when they have made a profit. That is what we will urge friends in the regions to be more creative," he concluded.
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