Reforms to laws, implementation may be delayed<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The much-awaited tax reform is unlikely to be implemented soon as
\nlawmakers will not be able to finish deliberating on the revised
\ndraft of tax laws on schedule.<\/p>\n
The House of Representatives' Commission XI for financial
\naffairs chairman Paskah Suzetta pointed to various complicated
\nissues in the draft laws and the tight schedule for the
\ndeliberation as the reasons.<\/p>\n
"I am pessimistic that the draft laws can be approved this
\nyear. We need more time to seek advice from various parties to
\nensure that the laws are not contrary to the public good," said
\nPaskah, who chaired a special team to deliberate on the
\nrevisions.<\/p>\n
With the lawmakers set to go into recess from Oct. 1 to Oct.
\n23, they will have less than two months to finalize the three
\ndraft tax laws arranged by the Ministry of Finance's Directorate
\nGeneral of Taxation before having another recess by the end of
\nthe year.<\/p>\n
Based on the initial government schedule, the revision -- the
\nthird since 1983 -- should be put into effect on Jan. 1, 2006.<\/p>\n
The three draft laws discussed by the House are Law No.
\n16\/2000 on general taxation arrangements and procedures, Law No.
\n17\/2000 on income tax and Law No. 18\/2000 on VAT on goods and
\nservices and luxury sales tax.<\/p>\n
Included in the laws are ways to address taxpayers' concerns
\nover uncertainties in collection and rebates, an introduction to
\na time limit for tax procedures and tax amnesty facilities, as
\nwell as selective audits of taxpayers.<\/p>\n
Responding to the possible delay, Director General of Taxation
\nHadi Purnomo said lawmakers had no reason to delay the
\ndeliberation of the revised draft of tax laws.<\/p>\n
"The draft laws are already established in terms of legal
\nlanguage and points. I don't understand the problems faced by the
\nlawmakers in passing the revised drafts. It should think it would
\nbe an easy job," he asserted.<\/p>\n
The draft laws, acknowledged by the business community as
\nfairly business friendly, were created jointly by the government
\nand a special team from the country's powerful business lobby
\ngroup, the Indonesian Chamber of Commerce and Industry (Kadin).<\/p>\n
Sources at the Directorate General of Taxation have argued
\nthat the proposed draft laws have accommodated some 95 percent of
\nrequests from Kadin, meaning that the government is seeking
\nreform in the tax regime.<\/p>\n
Elsewhere, Hadi said as of Sept. 15, the tax directorate had
\ncollected Rp 195 trillion (US$19.11 billion) in tax revenues from
\na full-year target of Rp 302 trillion.<\/p>\n
The revenue includes Rp 95 trillion from non-oil and gas
\nincome tax, Rp 21 trillion from oil and gas income tax, Rp 67.4
\ntrillion from value-added tax, Rp 9.8 trillion from land and
\nproperty tax and Rp 1.8 trillion from other taxes.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/reforms-to-laws-implementation-may-be-delayed-1447893297",
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