Councilor wants city to impose liquor sale fees

Councilor wants city to impose liquor sale fees

JAKARTA (JP): A councilor has urged the government to allow
the city to impose fees on liquor distributors in addition to tax
on retailers.

Councilor Muhammad Banang of the United Development Party
(PPP) faction was responding to a new instruction issued Friday
by Minister of Home Affairs Moch. Yogie S.M.

The instruction, following last year's protests on the city's
new bill on liquor sales, banned regional administrations from
imposing taxes, levies and other fees on liquor sales.

Administrations are only allowed to impose tax on liquor
retailers.

The provincial decree, passed by the council last September,
imposes distribution fees in addition to a tax on liquor
retailers.

"The distribution fees (for permits costing Rp 10 million a
year) would make people reluctant to distribute liquor," Banang
said Saturday.

The decree aimed to replace the 1972 decree, considered too
weak to control alcohol distribution because it only imposed tax
on retailers.

It also stipulates liquor to be sold in the city must be in
bottles of at least 200 cc. Compulsory labels from the Governor,
stating liquor is harmful to one's health, are to cost between Rp
400 for the 200cc to 400cc bottles with alcohol content of 1 to 5
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 bottle. Bottles
of 8,000 cc, for instance, are charged at Rp 50,000.

However protesters, particularly from Moslem groups, said the
city's bill was tantamount to legalizing alcohol, forbidden under
Islamic teachings.

Under pressure, the decree was delayed.

Banang said the provincial decree would give stronger legal
basis to the city's public order office in cracking down on
illegal liquor distributors.

"With the decree, there would be restriction on places that
were allowed to sell liquor," Banang said.

Banang explained the administration could not completely ban
liquor from the city: "As the country's capital and a service
city, Jakarta should provide for foreign visitors, including
liquor."

Under the new ministerial instruction, provincial and regional
administrations were given greater autonomy on the control of
liquor sales and distribution.

The instruction for governors and regents, or mayors, follows
Presidential Decree Number 3/1997 on supervision and control of
alcoholic beverages.

Also Saturday, councilor M.U. Fatommy Asaari of the ruling
party Golkar faction said the provincial decree was sufficient to
contain liquor sales. (ste)