Books should be freed of value-added tax: Habibie

Books should be freed of value-added tax: Habibie

JAKARTA (JP): President B.J. Habibie concurred on Monday that
there should be a halt to the 10 percent tax on books, which
publishers complain unnecessarily adds to book prices.

"I quite agree that books should be freed of the value-added
tax," he said at the opening of the 14th congress of the
Association of Indonesian Publishers (IKAPI) at the State Palace.

Ikapi Chairman Rozali Usman had asked in his opening address
that the government lift the tax for almost all types of books,
which has long been blamed for their steep prices.

The government only absorbs taxes on schoolbooks and religious
works.

The recommendation to end the tax has received backing by
legislators in the two preceding five-year terms of the House of
Representatives, Rozali said.

"In the Asia Pacific region, it is only our beloved Indonesia
which applies a value-added tax on books," Rozali said in his
speech.

"The recommendation for no tax on books is also in line with
that of the International Publishers Association Geneva and Asia
Pacific Publishers Association Tokyo of which Ikapi is a member."

Rozali said books were a basic tool in human resource
development.

Habibie said allegations of monopolistic and corrupt practices
in the procurement of school textbooks should be thoroughly
investigated because it would ultimately harm the country's
education program.

The President also pointed out the necessity to create a
conducive business atmosphere for the book industry because the
sector had a decisive role in the learning-teaching process.

"I have heard some assertions over collusive and monopolistic
practices in the procurement of textbooks for schools," the
President said.

Minister of Education and Culture Juwono Sudarsono has said
his ministry is probing the report. Publishers have complained
that those who win bids for the publication of schoolbooks are
inevitably well-connected to ministry authorities in charge of
schoolbook publications.

"I hope that IKAPI will discuss all the problems," the
President remarked.

The government allocated US$172.8 million, including a $132.5
million loan from the World Bank, to finance the procurement of
textbooks for junior high schools from 1996 to 2000.

Many complaints have arisen about the quality of the books.
The ministry has reportedly decided to withdraw English textbooks
for junior high schools due to their low quality.

The private Indonesian Corruption Watch appealed to the World
Bank to stop funding for the program until the investigation into
problems is completed. (prb)