Five tax-related bills deliberated

Five tax-related bills deliberated

JAKARTA (JP): House of Representatives members have demanded
the bill on local taxes and fees not increase the burden of
businesses and local administrations.

Legislator Setyadji Lawi from the Indonesian Democratic
faction said yesterday the bill should eliminate unnecessary
local taxes and levies to reduce business' high costs of
businesses.

But he also said the bill should not reduce local
administrations' revenues.

"We sense a pessimistic belief or even fear among local
administrations that their revenues will decline (due to the
introduction of the bill)," Setyadji said.

Yesterday, the government and the House started deliberating
the bill and four other tax-related bills. They include the tax
on the transfer of land and buildings, tax collection with
distress warrants, tax courts and non-tax revenue bills.

Minister of Finance Mar'ie Muhammad said the introduction of
the five bills was to increase revenues for both the central
government and local administrations and to provide the business
sector with legal certainty.

Legislator Hartini Mochtar Kasran said "suggestions and
proposals from local administrations should be taken into
consideration, especially on matters related to new taxes which
are not yet accommodated in the bill and subject to further
regulations".

Sharing Hartini's view Setyadji said the introduction of new
taxes, especially those on gasoline, needed further deliberation
because it would affect most people and industry.

Setyadji said his faction hoped the bill would help develop an
institutionalized local tax collection system to prevent the
emergence of illegal levies.

"We hope the system would prevent loopholes and minimize
opportunities for collusions between tax collectors and tax
payers," Setyadji said.

Both the Indonesian Democratic and Golkar factions wanted
further deliberations over the five percent rate stipulated in
the tax on the transfer of land and building bill.

Setyadji also said his faction wanted the bill to exempt cheap
houses with maximum retail price of Rp 30 million (US$12,500)
from the tax on the transfer of land and building.

Commenting on the tax court bill Hartini said the Golkar
faction wanted the deliberating team to clarify the Supreme
Court's position in the tax court system.

Under the tax court bill all tax court decisions are final.
There is no appeal mechanism stipulated in the bill.

The tax court will replace the current Tax Arbitration Council
which businesspeople saw as ineffective in settling tax disputes.

Both Hartini and Setyadji commended the government's
initiative in presenting the non-tax revenue bill, which was
expected to realign all government incomes raised from sources
other than taxation.

Under the bill, all such incomes should be accounted for in
the annual state budget. (rid)