City to tax lottery organizers

City to tax lottery organizers

The Jakarta Post, Jakarta

The City Council plans to propose a bylaw on taxes to be paid
by organizers of free lotteries in the mass media.

Councillor Binsar Tambunan of the Indonesian Democratic Party
of Struggle said the bylaw was expected to increase the city's
revenue by between Rp 3 billion and Rp 4 billion a year.

"I estimate the city could earn more than that. I hope the
bylaw will be approved next year," Binsar, who heads a team
preparing the bylaw, told reporters.

He said the tax on the lottery prizes in the mass media was
currently paid by the winners of the lottery to the Ministry of
Social Affairs.

He said companies that currently conducted free lotteries
through private television stations, should pay tax to the city
administration.

"Next year, the companies will have to pay the tax before they
obtain a permit from the administration to hold the lottery,"
Binsar said.

He said the bylaw was prepared by the council in cooperation
with the Institute of Structural Development of the University of
Indonesia.

Without mentioning the amount, Binsar said companies that
regularly held free lotteries, would pay higher tax.

"The amount of the tax also depends on the prizes as well as
when they hold the lottery," he added.

Some banks currently sponsor quizzes with prizes worth
billions of rupiah, including state-owned Bank Mandiri which
sponsors Who Wants to be a Millionaire? on RCTI television
station.

Privately-run Bank BCA also sponsors weekly quiz Gebyar BCA on
Indosiar television station.

Inspired by the spirit of regional autonomy, the city is
intensively pursuing efforts to increase its revenue.

Last week, the administration announced it planned to tax
street vendors here. But Governor Sutiyoso said later that
thorough discussions were needed before the plan could be carried
out.