Legislators, editors reject tax on reading materials<\/p>\n
Kurniawan Hari, The Jakarta Post, Jakarta<\/p>\n
In an effort to lower book, newspaper and magazines prices,
\neditors and legislators on Thursday agreed to demand the
\ngovernment remove the imposition of value-added tax (VAT) on
\nreading material.<\/p>\n
They said getting rid of the tax would bring down the prices
\nof newspapers, magazines, and books which would boost sales and
\nincrease reading among the public.<\/p>\n
Deputy Chairman of House Commission I for broadcasting and
\nmedia Effendy Choirie pledged his commission would soon discuss
\nthe matter with the Minister of Industry and Trade and the
\nfinance ministry's director general.<\/p>\n
VAT accounts for 10 percent of the prices of printed material.
\nIt means an additional cost for readers.<\/p>\n
Leo S. Batubara of the Association of Newspaper Publishers
\n(SPS) said the total amount of VAT paid by newspapers to the
\ngovernment was Rp 140 billion last year. As of June this year, he
\nsaid, the amount had reached Rp 70 billion.<\/p>\n
"Knowledge should not be taxed," Leo said.<\/p>\n
He added the high prices of newspapers were also to blame for
\ntheir low circulation.<\/p>\n
There are about 566 publications in Indonesia, but only 30
\npercent of them are profitable.<\/p>\n
Home to more than 210 million people, Indonesia's daily
\nnewspaper circulation stands at 4.8 million copies, far below the
\nUnited Nations Educational, Scientific, and Cultural
\nOrganization's (UNESCO) ideal daily circulation of 22 million
\ncopies.<\/p>\n
Chief editor of Media Indonesia daily Saur Hutabarat suggested
\nthe public should not be required to pay VAT on books and
\nnewspapers.<\/p>\n
"Books and newspapers educate the public. Therefore, there
\nshould be no need to impose VAT on those items," said Saur.<\/p>\n
Chief editor of Kompas Suryopratomo and deputy chief editor of
\nThe Jakarta Post Endy M. Bayuni agreed with Saur that the VAT
\nmust be dropped.<\/p>\n
"VAT has raised the prices of books and newspapers," said
\nSuryopratomo.<\/p>\n
A number of legislators clearly expressed their support for
\nthe removal of value-added tax imposed on books and newspapers.<\/p>\n
"Tax on knowledge is senseless. This must be removed," said
\nlegislator Astrid S. Susanto.<\/p>\n
During the hearing, legislators also questioned the
\nperformance of Antara state news agency.<\/p>\n
Head of Antara Mohammad Sobary said he had decreased the
\nagency's deficit from Rp 7 billion to Rp 2.3 billion and fired
\nseveral employees found guilty of embezzlement and fraud.<\/p>",
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