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Observer: Jokowi Seeks Popularity by Granting Tax Exemption

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7 October 2013 13:24 WIB

Jakarta Governor, Joko Widodo, also known as Jokowi.

TEMPO.CO, Jakarta - Public Policy Observer Agus Pambagyo, stated that the Jakarta Governor Joko Widodo's maneuver to grant a tax exemption to small restaurants is seen as a means to gain popularity. "(He) tries to be a good-hearted governor since he will be running for Presidency," Agus said.

Agus mentioned that the tax should be the regional authority, instead of Governor Jokowi's. "A fair and good governance should impose tax to the small restaurants," he added.

He explained that several small restaurants deserve the tax, given its major turnover that is bigger than bigger restaurants. However, the 21 percent VAT was only imposed to the bigger restaurants. Therefore, he believed that the tax should be imposed based on turnover category.

Moreover, Agus said that small restaurant owners tend to contribute informal 'tax' imposed by the city thugs. "Therefore, Governor Jokowi should also ensure that small restaurants will be free from such 'tax' as well," he added.

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