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)