Many UN Highlights, Rano Karno: Jakarta Has Given Many Incentives

JAKARTA - Deputy Governor of DKI Jakarta Rano Karno responded to the fatwa of the Indonesian Ulema Council (MUI) regarding taxation. One of them is that the Land and Building Tax (PBB) is not worth collecting repeatedly.

Rano emphasized that the DKI Provincial Government has actually provided many incentives to its citizens. This incentive is carried out as a form of relief which also comes from tax revenues.

"Actually, Jakarta has provided a lot of incentives. Very many. There are a lot of them," said Rano when met at Pullman Jakarta Central Park, West Jakarta, Tuesday, November 25.

This year, there are a number of tax incentive policies implemented in Jakarta, ranging from the continuation of the land and urban and urban tax exemption (PBB-P2) houses with NJOP below Rp1 billion for the first house, the abolition of administrative witnesses for motor vehicle taxes (PKB), to relief duties for land and building rights (BPHTB), especially for the purchase of the first house.

According to Rano, these incentives are not only related to buildings, but also target other basic needs such as transportation and education.

"Yes, when we talk about incentives, not just buildings. Transportation incentives, KJP, KJMU incentives. Well, that's the tax component given for that," he said.

Rano also admitted that the issue of repeated UN levies could indeed lead to complaints from the public. However, he emphasized that determining or evaluating taxes is not within the authority of local governments.

"It must be a decision (the central government). Taxes are a central component. Regions have taxes, but it's a component of the law," said Rano.

Rano said the tax collection structure had been regulated by law, so local governments could not make unilateral decisions regarding changes to the UN scheme.

"Yes, if you really want to evaluate it, it must be evaluated. Of course we will follow if the center has to do that," he explained.

Previously, MUI established a fatwa for fair taxes, in response to social issues that arose as a result of an increase in land and building taxes (PBB) which were considered unfair, thus disturbing the public.

Head of the MUI Fatwa Division, Asrorun Niam Sholeh, at the MUI National Conference, in Jakarta, Sunday (23/11), said that tax objects are imposed only on assets that can be used for productivity and/or are secondary and tertiary needs.

"So the tax collection on something that becomes a basic need, such as basic necessities and houses and the earth that we live in, does not reflect the justice and purpose of taxation," he said again.

This, according to him, is because in essence, taxes are only imposed on citizens who have financial capacity.

"If it is analogous to zakat obligations, the financial capacity is sharia at least equivalent to the nishab zakat mall, which is 85 grams of gold. This could be the limit for PTKP (income is not taxable)," he said.

Therefore, MUI provides a number of recommendations, such as a review of the tax burden, especially the progressive tax whose value is felt too large.

In addition, the government and the DPR are considered obliged to evaluate various statutory provisions related to taxation that are unfair and make this fatwa a guideline.

The government is also considered obliged to manage taxes with a mandate and use this fatwa as a guide.