Tax Amnesty Volume II Is Considered Only Profitable For High-End Entrepreneurs
JAKARTA - Member of Commission IX of the House of Representatives of the NasDem Faction, Fauzi H Amro, rejected the Government's plan to resume the policy of tax amnesty aka tax amnesty volume II through the revision of the Tax Law. The reason, the policy of tax amnesty volume II is not appropriate when the State Budget (APBN) is still minus.
"There needs to be additional income from the tax sector, so income from the sector needs to be boosted, rather than trimmed," Fauzi said, Saturday, May 22.
Chairman of the Kapoksi Nasdem Faction of Commission IX revealed based on data from the Ministry of Finance, as of the end of November, state revenues were recorded at Rp 1,423 trillion while state spending was Rp 2,306.7 trillion.
"This makes the State Budget 2020 record a deficit of Rp 883.7 trillion or equivalent to 5.6 percent of Gross Domestic Product (GDP)," he said.
Then in the first quarter of 2021 apbn, the country again experienced a deficit of Rp 144.2 trillion. The deficit is caused by low state revenues while spending soars.
In terms of state revenues, throughout January to March 2021 collected Rp 378.8 trillion, grew 0.6 percent year on year (yoy), on several occasions The Minister of Finance (Minister of Finance) Sri Mulyani Indrawati admitted that state revenues are still sluggish mainly due to tax receipts that are still minus 5.6 percent yoy, while state spending for March 2021 increased by 15.6 percent, the external growth could increase.
"Central government spending is mainly supported by goods spending, capital expenditure and social spending," he said.
Meanwhile, the ratio of state tax receipts to GDP fell steadily from 13.3 percent in 2008 to 9.76 in 2019 and in March 2021 to just 7.32 percent. This has also been helped by the increase in cigarette excise every year.
"This year's tax receipt ratio is the lowest since the New Order even close to the achievement of the Old Order with a ratio of 3.7 percent, so I think the Government should go the extra mile to boost revenues from the tax sector, instead of rolling back the tax amnesty policy volume II that is favorable for our state budget," he explained.
Fauzi considers the tax amnesty policy only benefits high-class entrepreneurs, while on the one hand, MSME actors continue to be asked to obey taxes.
"This is not fair, the SMEs are targeted at taxes, while large entrepreneurs are given many incentives or stimulus such as the 0 DP policy for automotive credits including tax amnesty or tax amnesty," said the South Sumatra legislator.
After all, said Fauzi, Tax Amnesty volume I wrote until now there has been no report and including the impact for the increase of the State Budget.
"It's not clear yet. Therefore, I firmly reject the government's plan to resume tax amnesty policy volume II," he said.
He said the tax amnesty volume I was conducted in 2016. If enacted again in the near future, it could lead to taxpayers increasingly disobedient to fulfilling their obligations, because they think, wait for the time of forgiveness or tax amnesty.
"So it is better that the tax amnesty policy should not be continued, especially our country needs additional revenue from the tax sector," he said.
Fauzi who is also a member of banggar DPR RI asked the government to roll out sunset policy instead of tax amnesty. He considers sunset policy safer and more sustainable to be included in the framework of fiscal policy consolidation in 2022. Because, the tax discount on sunset policy is still in the range of 15 percent.
"Of course the amount of this discount is different from the tax amnesty which can reach 2 percent discount and by 2023 is expected to normalize the fiscal deficit at 3 percent of pbd," he said.
Therefore, Fauzi again reminded the Government to go the extra mile so that state budget revenues from the tax sector can be increased.
"Stop spoiling entrepreneurs with Tax Amnesty policy, the policy should not be continued, when our state budget continues to run deficit because of the pandemic. The government in addition to increasing the target revenue from the tax sector, must also be more creative in finding other sources of income, so that our state budget does not continue to run a deficit," he concluded.