Indonesian Political, Business & Finance News

Sports tax

Sports tax

From Media Indonesia

It is still fresh in our memories the various efforts made to
collect funds for sports development, including through different
national lotteries (Lotto, Porkas and SDSB) and compulsory
donations charged with electricity and telephone bills and so
forth. The fact that this compulsory donation is usually
collected not on the basis of a law is something that the public
has frequently complained of.

Things would be different if such compulsory donations were
called a tax or a levy. I propose that the government, in
particular the Seventh Development Cabinet, introduce a sports
tax and a sports levy.

Once it is a sports tax or a sports levy, which is then based
on the tax law, it will be acceptable to the community. As for
the mechanism of its collection, I propose that it be linked with
the payment of electricity bills. If the value added tax of 10
percent is imposed on the basis of amount of electricity used, a
sports tax may be imposed on the size of the VAT used.

For example, with the electricity tariff in the S (social)
category, the sports tax rate could be Rp 0.50 per VAT, with the
electricity tariff in the R (household) category, the rate could
be Rp 1 per VAT, and with the electricity tariff in the U
(business) category, it could be Rp 1.50 per VAT.

As for the sports levy, this may be imposed on golfers, ice
skaters, fitness center members, bowlers, users of commercial
tennis courts, and jet-ski borrowers at jet-ski rentals, etc.,
and may amount to Rp 1,000 per person. If the VAT is imposed on
the basis of receipts, then this sports levy could be based on
the number of players.

A sports tax and a sports levy, when imposed, will generate
billions of rupiah every year. In this way, such things as
exacting donations not on the basis of a law (like what once
happened to my cellular telephone bill when it had out of the
blue Rp 5,000 as donation for the SEA Games) and selling sports
stickers without transparent accountability will never again
happen.

May this simple proposal be of use to the authorities
concerned.

HARIYANTO IMADHA

Bojonegoro, Central Java

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