Wed, 03 Aug 1994

Review on radio taxes law urged

The City Revenue Office is underlining the need to review the existing radio tax law in a bid to exempt owners of cheap, monophonic radios from paying taxes.

Fauzie Alvie Yasin, the head of the office, told The Jakarta Post yesterday that it would be absurd to impose a tax of Rp 3,000 (US$1.4) a year on a cheap radio which costs Rp 10,000.

Last month Governor Surjadi Soedirdja proposed the revision to the City Council, after listening to objections of tax payers who found the tax a burden.

Fauzie said his office had also asked the council to review the exemption of portable radios from the tax because they are now very costly.

When the present radio tax law was made two decades ago, portable radios were very cheap and usually owned by maids and other low income people, he said.

Therefore, the revision must consider technological aspects he said, adding that as of the end of last month his office had collected a total of Rp 100 million in radio tax for the 1994/95 fiscal year.

Helmy A.R. Syihab, the chairman of the City Council's Commission C on finance, confirmed that the governor had proposed the elimination of tax on monophonic, one band and cheap radios.

Helmy added the governor's proposal was now being worked out by the council. (arf)