JAKARTA. The Jakarta administration plans to raise the taxable value of property (NJOP) of buildings affected by the mass-rapid transit (MRT) project by up to 30 percent.
Jakarta Taxation and Fees Agency head Edi Sumantri said that this tax hike would be used to maximize Jakarta’s revenue.
“We will increase the NJOP in areas where the MRT project is being constructed by 30 percent,” Edi said as quoted by kompas.com.
The increase, for example, will apply to areas along Jl. Jendral Sudirman in Central Jakarta, which will see the NJOP increase to Rp 97.5 million (US$7,317) per square meter from the current Rp 75 million.
Edi also saw greater tax revenue potential from various types of properties, including restaurants, advertising and parking.
“After the MRT is in full operation, we can explore the tax revenue potential of each station in business areas,” he said.
