Collection of radio taxes to be intensified

JAKARTA (JP): The city administration is planning to step up its collection of radio taxes in an effort to help increase regional revenues despite criticism from various groups, including the consumer group.

"The intensification of the tax collection will occur because this tax has so far been neglected and we know that it has the potential of raising considerable regional revenues," Tb M. Rais, deputy governor for economic affairs, said in a one-day seminar on radio taxation yesterday.

The seminar, held by the Management Institute of Economic Law of the University of Indonesia in cooperation with the city's regional revenue office, presented a number speakers, including Zumrotin, chairperson of the Indonesian Consumers Protection Foundation (YLKI), and Fauzie Alvie Yassin, head of the revenue office.

Rais explained that the city's regional revenues steadily increased from only Rp 6.5 billion (US$2.97 million) at the beginning of the first Five Year Development (Pelita I) in 1969 to Rp 1.3 trillion last year.

"Despite the steady increase, however, the contribution from the tax on radios decreased from Rp 36 million in 1969 to less than Rp 1 million in 1989," he said.

"This happened because the radio tax, which was set at only Rp 600 per radio unit, was considered too small. Through a gubernatorial decree issued in 1990 the tax has been raised to Rp 3,000 each," Rais said.

Rais said that the tax has the potential of contributing Rp 3 billion each year from various owners, including motorists whose cars are equipped with radio receivers. According to the city administration data, there are about 1.4 million cars in Jakarta, most of which are equipped with radios.

Basically Jakartans are willing to pay the tax, as was shown during 1993/1994 fiscal year when the amount of radio tax collected reached Rp 124 million, he added.

Opposed

The city administration's collection plan, however, was strongly opposed by Zumrotin of YLKI.

No logical

She said it is not logical to intensify the collection of radio tax since radios are no longer considered luxury items. She also explained that most radio owners are from lower-income groups and that they would be unjustly burdened.

"Moreover, the collection will not be effective because it will require thousands of officers," she said.

Zumrotin said that the city administration could take other steps to increase regional revenues, such as targeting the collection of parking fees and luxurious goods.

Vice Governor Rais said that the city administration will assign all subdistricts to enforce the collection.

Head of the revenue office Fauzie Alvie Yassin said that due to difficulties this year, the office could only collect Rp 63 million, far below the target of Rp 197 million.

Fauzie said that in 1992/1993 and 1993/1994 radio tax revenues were almost nonexistent because of the mere Rp 600 collected per radio.

The gubernatorial decree on the radio tax ruled that every radio, except handy radios, in the city will be subject to a tax payment. (yns)