Jakarta Calls Off Levy of Warteg Tax

The Jakarta administration finally called off the plan to impose a 10 percent tax over all small eateries known locally as warteg. Food business which earns less than Rp 200 million per year shall not be levied taxes.  

Small eateries, whose profit is worth less than Rp200 million per year, or Rp16.6 million per month or Rp 550 thousand per day, are not included as restaurant tax object. 

Head of Jakarta Tax Agency, Iwan Setiawandi, stated that Regional Regulation No.11/2011 does not specify about warteg tax, but only regulates 10 percent of tax of the restaurant's income. 

The types of restaurants mentioned in this regulation are: restaurants, cafeterias, canteens, stalls, bars and the likes thereof, including food services and caterings. 

“This regulation is also valid in all regencies or municipals in Indonesia according to the Law No.28/2009 on Local Tax and Retribution,” said Iwan in Jakarta, today, Feb 2. 

He said the minimum tax rate is based on the discussion between the Provincial Legislation (Balegda) of DPRD DKI and the coordination meeting of Commission C of DPRD DKI as well as the executives and Warteg Association (Kowarteg) in 2011. 

Since December 29, 2011, the Local Regulation on Restaurant Tax has been legalized and was valid starting from January 2012.

***sources: VivaNews.com