Jakarta’s new street food vendor tax meets opposition
Now, from Indonesia’s biggest tycoons to some smaller, yet just as essential operators: street food vendors in Jakarta have come out against city government plans to tax them should they earn over Rp 60 million (US$6,660) in a year.
The Jakarta government plans to introduce the 10% levy on the city’s over 2,000 street food stalls starting 1 January 2011. It is expected to bring in an extra Rp 50 billion ($5.55 million) a year in revenue. Vendors are claiming the new tax will hit struggling operators, who may make Rp 200,000 ($22) a day at best, too hard as they face increasing competition from other sellers. Others question whether most vendors would even reach the government’s Rp 60 million a year threshold.
source & article: The Jakarta Post
Update 12/7: The Jakarta government has postponed the new tax as its “implementation needs to be restudied” (from Antara)
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