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)