Prize winners face social levy

Prize winners face social levy

JAKARTA (JP): The Ministry of Social Services is considering
to impose a one percent levy on the value of the mushrooming
prizes now offered by companies through various media.

Director General of Social Aid Development Sjafei Andjasmaja
said the levy seems to be the most acceptable of various
proposals the ministry received on ways of raising funds for
social activities, the Antara news agency reported.

The ministry lost a major source of income in November when
the government, under strong pressure from students and religious
leaders, scrapped the SDSB lottery.

The government has since been looking for a replacement but
stressed that any new fund raising scheme must not be a tax on
the people, particularly the poor.

The SDSB lottery, which was administered by the Ministry of
Social Services, was highly popular among the poor, which
prompted protests saying that it was addictive and taking
advantage of society's least fortunate.

If the proposal to impose a one percent levy on prizes from
contests and door prizes is approved, the scheme could be
implemented next year, Sjafei said.

He said the ministry received some of 130 proposals from the
public about ways to replaced the SDSB funds.

The others included imposing social levies on airfares, road
tolls, movie tickets and car registration taxes. These would be
additional burdens on the public, he said.

Since the abolition of the SDSB, many social organizations
have had to raise their own funds and rely less on government
hand outs. (02)