Alcohol levy only for city revenue, official assures
Alcohol levy only for city revenue, official assures
JAKARTA (JP): A high ranking official assured yesterday that
the new levy on alcohol distributors proposed in a bill passed by
the city council yesterday will go to the city revenue office.
Deputy Governor for Economic and Development Affairs Tb. M.
Rais also assured that there will be no private companies
involved in the levy collection.
He reiterated that no other fee will be imposed on alcoholic
drinks distributors.
Rais was responding to fears that private firms might seek
profits by obtaining rights to collect levies.
"We have never intended to give (the private sector) access to
monopoly... The Bali case has become our reference... Such a thing
need not be repeated in Jakarta," Rais said.
He was referring to the controversial decision of Bali's
Governor Ida Bagus Oka last year, to give the right to collect
levies from the sales of beer and liquor to PT Arbamass Multi
Invesco.
The decision was withdrawn in February after President
Soeharto's strong warning against levy collection by private
firms.
Earlier, another high ranking city official said that Arbamass
had submitted a similar proposal to the municipality in January.
Speculation on whether the municipality would accept the proposal
was aroused when reporters came to know of preparations for the
bill.
The new bill does not clearly mention whether the fees
will be the only burden on distributors. But Rais said "detailed
rules" based on the bill will follow.
"The council will also function as a supervisor," he said.
Rais attended a meeting of the council which heard the views
of each commission and each faction on the draft.
The bill proposes that permits for distributing alcohol cost
Rp 10 million per year. Liquor to be sold in the city must be in
bottles of at least 200 cc (not 100 cc as earlier reported), a
measure which councilors said is part of efforts to discourage
consumption by youngsters.
Labels, which the bill says is to be issued by the governor,
must be attached to each bottle signifying the municipality's
approval of distributors' permits. The labels will also state
that liquor is harmful to one's health.
Labels are to cost at least Rp 400 for the 200cc to 400cc
bottles with alcohol content of one to five percent.
The highest fee of Rp 5,000 is for liquor bottles of 400cc to
800cc with ethanol content of 20 to 55 percent.
Larger bottles are charged based on the fees for 800cc
bottles. Bottles of 8,000cc, for instance, are charged Rp 50,000.
In the meeting, the United Development Party faction, the only
faction with strong reservations, said that based on religious
considerations, it had decided to support the bill.
Although support would mean approving the sale of liquor which
is prohibited in Islam, the faction said the new draft was better
than the 1971 city rule on alcohol which only regulates taxes.
"This meant freedom to sell the haram liquor without control
which would have more fatal effects," the faction's position
paper said. Haram means prohibited by Islam.
Other factions gave their support but urged consistent action
against unauthorized sale of liquor. The ABRI faction said
constant raids must be conducted on stalls selling liquor in
plastic containers in which alcohol content is unclear. (anr)