MUI Issues Fatwa, Director General Of Taxes Affirms PBB P2 Local Government Authority

Director General of Taxes Bimo Wijayanto /ANTARA / Imatul Silfia

JAKARTA - Director General (Dirjen) of Bimo Wijayato Taxes said the fair tax fatwa set by the Indonesian Ulema Council (MUI) is a type of tax managed by local governments.

"Actually, what was asked was PBB P2 (earth tax and urban and rural buildings). That's in the regional (government)," said Bimo as quoted by ANTARA, Monday, November 24.

Regarding the tax object, existing regulations have determined that their authority is managed by the regional government, including matters of policy, tariffs, basic allowances, to the imposition of tax rates.

Meanwhile, the UN objects under the authority of the DGT range from the marine, fisheries, mining, and forestry sectors.

"We have also discussed with MUI before. So, later we will try (looking for clarity) with MUI," he said.

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 (No Tax Income)," 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.