West Java to impose levies on cattle

Yuli Tri Suwarni, The Jakarta Post, Bandung

In a bid to increase revenue, the West Java provincial administration will likely impose levies on cattle transported via the province.

The provincial legislative council will deliberate upon the proposed levy in its plenary session on Oct. 20.

Governor R. Nuriana said on Friday that there is nothing new in the bylaw. "We have submitted the draft of the bylaw to the legislature. We just want to revive the 1998 regulation which has been ineffective."

He said the old regulation had been suspended by the (central) government regulation No. 20/1997 and Home Affairs Minister's Instruction No. 10/1998 on the limitation of levies imposed by provincial administrations (in the past).

"Now the imposition of levies on cattle is possible following the issuance of Laws. No. 22 and 25/1999 on regional autonomy ," he said.

According to the bylaw, the levy will be one per mill of the value of the animal. "If a cow is valued at Rp 5 million, the levy will be only Rp 5,000," Nuriana said.

The governor said that the provincial administration would also charge the animals' owner for a required health examination on the animals at the check points in Banjar, Losari and Cikarang.

"The examination is a must to make sure that all cattle entering (or passing through) the province are healthy," he said.

The new bylaw, according to Nuriana, will also include a mandate for the elimination of cattle found to be carrying contagious diseases.

In a hearing on the bylaw on Wednesday, some legislators protested the governor's proposal.

"We are worried that the levy will just cause the price of meat and cattle to soar," said Yudi Widiana Adhia, of Commission B, which deals with the economy.

However, according to Nuriana, such a small levy will not increase costs.

Nuriana's plan is being criticized by at least one expert on constitutional law from Padjadjaran University in Bandung.

"The cattle will just pass (through the province). It will be very illogical to impose levies on them. Transportation levies would sound more rational."

"As far as I know levies on animals will be allowed only for cattle entering an area and those that are processed in the area while the products are sold to other areas. In this case the local administration sets up fees for the (health) examination of animals."

This is a case of misinterpretation of the laws on regional autonomy and the financial balance between central and regional administrations, he said.

"In principle the laws authorize the regional administration to impose any levies that affect its own citizens. The laws are only (meant to be) effective in their own regions."

"I hope that the decision will be reviewed. The policy will provoke "retaliation" from other provinces. Things will be counterproductive," said Indra. "There are many other ways to raise genuine regional revenues."