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The decision was withdrawn in February after President Soeharto's strong warning against levy collection by private firms.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)