Lifting of luxury tax on sports equipment sought

Lifting of luxury tax on sports equipment sought

JAKARTA (JP): The National Sports Council (KONI) is discussing
with the office of the state minister of youth affairs and sports
on the possibility of exempting imported sports equipment from
luxury tax.

KONI secretary-general Rudolf S. Warouw told reporters on
Wednesday that both institutions wanted to set up a tight system
to prevent illegal practices in the purchasing procedure.

"Any tax exemption must benefit sports training and
competition," he said, adding that the purchasing procedure,
including the quantity and the price of the goods, must be
transparent.

He also said the council might be the purchaser itself or it
could appoint main distributors of certain products.

"We will find the best way to get imported sports equipment,"
he said.

Warouw said the council was asking for a list of imported
sports equipment that sports organizations needed to purchase.

"So far, only the Indonesian Target Shooting and Hunting
Association (Perbakin) has sent a request to buy firearms and
bullets from abroad," he said.

He said the council's chairman Wismoyo Arismunandar would meet
finance minister Bambang Sudibyo to give him a list of sports
equipment which needed tax exemption. Warouw, however, failed to
give the date.

"He (Wismoyo) wants detailed information so he can convince
the minister on the importance of tax exemption," he said.

Warouw said not all sports organizations would need tax-free
imported goods because they had sponsors who could provide them
with international-standard equipment.

He also said sports organizations would request an exemption
on equipment bought to be used in the 15th National Games (PON)
in Surabaya, East Java.

"We will meet with communications minister Agum Gumelar
tomorrow (Thursday) to ask for a 50 percent reduction in
transportation fees for those competing at PON," he said.(ivy)