Bogor City UN Increases To 0.25 Percent, Except For NJOP Above Rp10 Billion

Land and Building Tax (Photo: Antara)

Mayor of Bogor, West Java, Dedie A Rachim, has raised the rate of Rural and Urban Land and Building Tax (PBB-P2) to 0.25 percent per year for all levels of Tax Object Selling Value (NJOP), except for objects with NJOP above Rp10 billion that do not experience tariff changes.

Member of the Regional Regulation Formation Agency (Bapemperda) of the Bogor City DPRD, Endah Purwanti said the tariff adjustment was a follow-up to the mandate of the Ministry of Home Affairs (Kemendagri) in the amendment to Regional Regulation (Perda) Number 11 of 2023 concerning Regional Revenue and Regional Retribution (PDRD).

"The government is given room to increase the tariff by 0.5 percent. However, the DPRD together with the Bogor City Government agreed to set an increase of only 0.25 percent so as not to burden the community," said Endah quoting Antara.

The increase in PBB-P2 has been determined in the Plenary Meeting with the agenda of Determining the Bogor City Raperda on Amendments to the Bogor City Regional Regulation Number 11 of 2023 concerning Regional Taxes and Regional Retribution at the Bogor City DPRD Building on August 15.

He added that tariff adjustments were made in line with the reduced financial assistance from the central government. With this new policy, the local government hopes that taxpayer compliance will increase and can support local revenue.

"The hope is that more taxpayers will obey so that regional income will increase and fiscal burdens due to reduced subsidies can be covered," he said.

Based on the previous regulations, the UN-P2 rate varied from 0.10 percent to 0.25 percent in accordance with the NJOP amount. However, with the new regulations, all NJOPs ranging from Rp. 100 million to Rp. 10 billion were set uniformly at 0.25 percent.

In addition, Endah emphasized that ambulance services at hospitals, health centers, and the Health Office are now categorized as health services, not public services. With this regulation, local governments cannot increase the tariff for these basic services.

"The city government must not increase the rates charged to the community because this is included in basic health services," he said.

He also highlighted the plan to withdraw levies in the Pajajaran Sports Hall area. According to him, the Bogor City Youth and Sports Service (Dispora) was asked to prepare a more comprehensive study before setting tariffs so as not to cause rejection from the public.

Endah hopes that with the determination of this new regional regulation, regional tax management will be more optimal. Taxpayer data is now digitally connected so that regional income can be monitored every day.

"The hope is that regional income will increase without having to provide a heavy additional burden for the community," he said.