House calls govt to task on revenue<\/p>\n
JAKARTA (JP): Members of the House of Representatives have
\nagain criticized the government's handling of non-tax revenue
\nraised by various ministries and government agencies.<\/p>\n
Legislator Saleh Khalid of the United Development Party
\ndemanded at a House plenary session yesterday that the government
\ngive a full account of the use of all revenue raised from sources
\nother than taxation since 1969.<\/p>\n
Non-tax revenue is derived from licensing fees, user fees,
\nroyalties and rents and investment income from state assets.<\/p>\n
He lamented that, while it had collected non-tax revenue since
\n1969, the beginning of its first Five-Year Development Plan, the
\ngovernment had only unveiled a bill on non-tax revenue last
\nDecember.<\/p>\n
\"The United Development (Party) faction demands that the
\ngovernment provide an audited account of the use of non-tax
\nrevenues since 1969,\" he told the plenary session.<\/p>\n
Saleh cited several levies imposed by ministries and other
\ngovernment agencies -- with or without the consent of the finance
\nminister -- and those imposed by rulings of higher authority,
\nincluding presidential decrees or laws.<\/p>\n
Levies imposed without the consent of the finance minister
\nincluded a Rp 8,400 (US$3.50) levy imposed by the Ministry of
\nTourism, Post and Telecommunications on every hand-phone
\npurchased and a $20 levy on every laborer working overseas.<\/p>\n
Levies imposed with the finance minister's consent include the
\nlevy on telecommunications service providers: They are required
\nto transfer 1 percent of their revenue to an account of the
\nminister of tourism, post and telecommunications.<\/p>\n
Levies backed by presidential decrees or laws include a levy
\non television ownership, a $200 mandatory training fee for
\nlaborers wanting to work overseas and a 2 percent income-tax
\nsurcharge on those with annual after-tax incomes of more than Rp
\n100 million.<\/p>\n
Other levies include reforestation funds, which had
\naccumulated to more than Rp 800 billion by the end of last year,
\nand forestry fees, which were worth Rp 580 billion for last year
\nalone.<\/p>\n
\"The United Development faction asks the government to explain
\nwhy those non-tax levies which are outside the state budget
\nsystem are still in place,\" he said<\/p>\n
\"Doesn't the government rely on the state budget system which
\nneeds approval from the House?,\" Saleh asked.<\/p>\n
He also lambasted the finance minister for allowing ministries
\nand government agencies to manage the revenue they raised by
\nthemselves.<\/p>\n
\"Does the finance minister have authority above the law to
\nlegalize levies?\" Saleh asked.<\/p>\n
Legislator Anwar Datuk of the Indonesian Democratic Party
\ndisclosed at the same session that the government and local
\nadministrations had imposed 4,396 kinds of legal levies.<\/p>\n
These included 195 levies imposed by the central government,
\n941 levies by provincial administrations and 2,802 levies by
\nregency administrations.<\/p>\n
Besides these, there were 419 levies introduced by the
\ngovernment or local administrations without consultation with the
\nHouse or local legislatures, and 39 levies imposed by
\nassociations.<\/p>\n
\"The use of these levies is not controlled or transparent...
\nbecause they are usually transferred to the private accounts of
\nbureaucrats. Thus, there is speculation that these funds have
\nbecome a source of dishonesty, corruption and other ill
\npractices,\" Anwar said.<\/p>\n
If all legal levies imposed by the central government were
\nincluded in the state budget, thus being more accountable, the
\ngovernment's non-tax income could double from the projected Rp
\n8.2 trillion for the 1997\/1998 budget year, beginning April, he
\nsaid.<\/p>\n
The non-tax revenue which is stipulated in the state budget
\nhas increased steadily from merely $7.4 billion in the 1969\/1970
\nfiscal year to Rp 7.8 trillion in the 1995\/1996 fiscal year.<\/p>\n
All factions of the House -- the United Development Party,
\nIndonesian Democratic Party, the Armed Forces and the ruling
\nGolkar grouping -- have hailed the government's initiative in
\npresenting the bill on non-tax revenue to the House.<\/p>\n
The bill stipulates that all the government's income from non-
\ntax sources such as licensing fees, user fees, royalties and
\nrents and investment income from state assets must be accounted
\nfor in the annual state budget.<\/p>\n
The factions agreed that the bill would create more certainty
\nfor business and improve the country's competitiveness by
\nreducing levies. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-calls-govt-to-task-on-revenue-1447893297",
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