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Medan Mall Shut Down for Dodging Rp 250B Tax

A closure notice is placed on the entrance of Mall Centre Point building in Medan, North Sumatra, Wednesday, May 15, 2024. (B-Universe Photo/Panji Satrio)

Langkatoday, Medan - A shopping center in the North Sumatra capital of Medan was temporarily closed by authorities on Wednesday for allegedly failing to pay local taxes totaling Rp 250 billion ($15.6 million).

City government officials placed a closure notice at the entrance of Mall Centre Point, the city’s fifth-largest mall on Jawa Street, revealing that it hasn’t paid local taxes since 2011.

Security officers entered the mall and asked visitors and tenants to evacuate before Mayor Bobby Nasution and members of the Municipal Police arrived and placed a sign reading “This Building Is Closed and Sealed” on the main door. A similar message was displayed on a large poster near the entrance.

The mayor said the mall management has dodged city taxes since the mall began its operations 13 years ago.

"It’s true the mall hasn’t paid taxes since 2011 when it became operational, amounting to an excess of Rp 250 billion. Accordingly, we can determine that this mall has been stripped of all licenses and we reserve the right to close it," Bobby said.

He claimed that the mall management has been served multiple warnings and reminders by the city government to no avail. He also met with the management to discuss the unpaid taxes without any progress.

The deadline for the repayment of local income tax and property tax is May 15, he said.

The companies that share ownership of the mall may owe the city government more money because they also operate apartments inside the same complex, Bobby added.

Source: JakartaGlobe

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