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)