Taxation collection methods

I have for a long time read "Your Letters" with varying degrees of interest. Lately three letters got me thinking about how much damage corruption, collusion and nepotism (KKN) have done to business in the past, and how much it will effect Indonesia's ability to climb out of the current economic crisis.

The first two letters were in the Nov. 23, 1999, edition of your paper. One being from J.S. Uppal, who seemed to imply that the method to get Indonesia out of the current monetary crisis was to tighten up taxation collection methods.

I ask why is it that when so many business have suffered for almost two years the effects of a major economic depression, is it not counterproductive to heap further tax burdens on the companies and people who wish to continue their operations?. In many cases these businesses are hard-hit economically, some becoming bankrupt and others just simply closing their doors.

Wouldn't it be more advisable to give businesses, some tax incentives to encourage investment, and so kick start the economy? If J.S. Uppal's view were to be adopted by the government, many businesses would be taxed out of existence, thus increasing the number of unemployed people.

In other edition there was a letter from Helina, whose views on the difficulties that Gus Dur will have in trying to rid the government of KKN I agree with. I can only sympathize with the problems that our President must be facing in trying to solve these problems. However what got me thinking is that these two letters were printed next to each other. Over the 12 years during which I have conducted business in Indonesia, I have witnessed many instances of KKN on the part of the taxation departments' "public servants", whereby taxes were deemed as fines and interest applied. Often these costs could be negotiated away for a percentage cash payment. If these monies had gone into the state coffers it would have greatly improved the government's ability to fight the economic problems.

The third letter was in the Nov. 25, 1999, edition from our favorite writer Donna K. Woodward, whose many letters about KKN within the manpower and immigration departments we would tend to agree with. What I think Donna, is maybe we should ask the editor to set up a "Poll" in which all the Post readers would be invited to vote for their most KKN riddled-figure/department each month and then "awards" and "accreditation" could be given.

LEO LEAROYD

Pelabuhan Ratu, West Java