Tourism Entrepreneurs Officially Submit Belid Material Tests On Entertainment Taxes To The Constitutional Court

Hariyadi Sukamdani submitted a judicial review to the Constitutional Court (Photo: Theresia Agatha/VOI)

JAKARTA - The Indonesian Tourism Industry Association (GIPI) officially submitted a judicial review to the Constitutional Court (MK) regarding Article 58 paragraph 2 of Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (HKPD).

The material test was registered with the Constitutional Court by GIPI General Chair Haryadi Sukamdani who was accompanied by the Attorney General of the GIPI DPP Muhammad Joni from Managing Partner Law Office Joni & Tamnas with other entertainment business actors, today, Wednesday, February 7.

"GIPI has officially registered a lawsuit with the Constitutional Court, which is related to Law Number 1 of 2022 concerning HKPD, namely Article 58 paragraph 2," Haryadi said at a press conference at the Constitutional Court, Jakarta, Wednesday, February 7.

Haryadi revealed that his party's main request was to ask the Constitutional Court to cancel the provisions in Article 58 paragraph 2 of the HKPD Law. For your information, the article states that the Special Goods and Services Tax Rate (PBJT) for entertainment services at discotheques, karaoke, nightclubs, bars and steam/spa baths is set at a minimum of 40 percent and a maximum of 75 percent.

"Article 58 paragraph 2 contains articles on different tariff treatment for entertainment service businesses, namely nightclubs, discotheques, bars, karaoke and steam baths or spas. So, we ask to cancel it," he said.

"We can see from the process of determining the tariff itself, it does not have a strong calculation or consideration basis. So, there is a lot of discrimination," he continued.

According to Haryadi, his party submitted a judicial review of Article 58 paragraph 2 of the HKPD Law using five (5) references or five test stones in the 1945 Constitution (UUD). They consider the provisions in Article 58 to be contrary to the 5 articles in the 1945 Constitution.

Five test stone articles in the 1945 Constitution, namely Article 28 paragraph 1 concerning fair legal certainty; Article 28 i paragraph 2 concerning prohibition against discriminatory action; Article 28 g paragraph 2 concerning the protection of property under his rule; Article 28 h paragraph 1 concerning health services; and Article 27 paragraph 2 concerning the right to get a job and life that is feasible for humanity.

"So, there are 5 articles in the 1945 Constitution that we value contrary to Article 58, especially regarding the issue of discrimination because in the category of 5 types of businesses it is distinguished from others," he said.

Furthermore, Hariyadi estimates that the trial of this material test will be long because the Constitutional Court will prioritize the trial of election disputes because it has now entered the 2024 democratic party.

"Therefore, we will write a circular (SE) to all entertainment service actors affected by article 58, which basically we urge them to pay tax rates according to the old tariff so that they can survive," he added.