House calls govt to task on revenue

House calls govt to task on revenue

JAKARTA (JP): Members of the House of Representatives have
again criticized the government's handling of non-tax revenue
raised by various ministries and government agencies.

Legislator Saleh Khalid of the United Development Party
demanded at a House plenary session yesterday that the government
give a full account of the use of all revenue raised from sources
other than taxation since 1969.

Non-tax revenue is derived from licensing fees, user fees,
royalties and rents and investment income from state assets.

He lamented that, while it had collected non-tax revenue since
1969, the beginning of its first Five-Year Development Plan, the
government had only unveiled a bill on non-tax revenue last
December.

"The United Development (Party) faction demands that the
government provide an audited account of the use of non-tax
revenues since 1969," he told the plenary session.

Saleh cited several levies imposed by ministries and other
government agencies -- with or without the consent of the finance
minister -- and those imposed by rulings of higher authority,
including presidential decrees or laws.

Levies imposed without the consent of the finance minister
included a Rp 8,400 (US$3.50) levy imposed by the Ministry of
Tourism, Post and Telecommunications on every hand-phone
purchased and a $20 levy on every laborer working overseas.

Levies imposed with the finance minister's consent include the
levy on telecommunications service providers: They are required
to transfer 1 percent of their revenue to an account of the
minister of tourism, post and telecommunications.

Levies backed by presidential decrees or laws include a levy
on television ownership, a $200 mandatory training fee for
laborers wanting to work overseas and a 2 percent income-tax
surcharge on those with annual after-tax incomes of more than Rp
100 million.

Other levies include reforestation funds, which had
accumulated to more than Rp 800 billion by the end of last year,
and forestry fees, which were worth Rp 580 billion for last year
alone.

"The United Development faction asks the government to explain
why those non-tax levies which are outside the state budget
system are still in place," he said

"Doesn't the government rely on the state budget system which
needs approval from the House?," Saleh asked.

He also lambasted the finance minister for allowing ministries
and government agencies to manage the revenue they raised by
themselves.

"Does the finance minister have authority above the law to
legalize levies?" Saleh asked.

Legislator Anwar Datuk of the Indonesian Democratic Party
disclosed at the same session that the government and local
administrations had imposed 4,396 kinds of legal levies.

These included 195 levies imposed by the central government,
941 levies by provincial administrations and 2,802 levies by
regency administrations.

Besides these, there were 419 levies introduced by the
government or local administrations without consultation with the
House or local legislatures, and 39 levies imposed by
associations.

"The use of these levies is not controlled or transparent...
because they are usually transferred to the private accounts of
bureaucrats. Thus, there is speculation that these funds have
become a source of dishonesty, corruption and other ill
practices," Anwar said.

If all legal levies imposed by the central government were
included in the state budget, thus being more accountable, the
government's non-tax income could double from the projected Rp
8.2 trillion for the 1997/1998 budget year, beginning April, he
said.

The non-tax revenue which is stipulated in the state budget
has increased steadily from merely $7.4 billion in the 1969/1970
fiscal year to Rp 7.8 trillion in the 1995/1996 fiscal year.

All factions of the House -- the United Development Party,
Indonesian Democratic Party, the Armed Forces and the ruling
Golkar grouping -- have hailed the government's initiative in
presenting the bill on non-tax revenue to the House.

The bill stipulates that all the government's income from non-
tax sources such as licensing fees, user fees, royalties and
rents and investment income from state assets must be accounted
for in the annual state budget.

The factions agreed that the bill would create more certainty
for business and improve the country's competitiveness by
reducing levies. (rid)