Rejecting The Increase In Tax Rates And VAT For Basic Foods, Members Of The House Of Representatives From The Nasdem Faction: We Will Fight For It

Illustration. (Photo: Unsplash)

JAKARTA - The Ministry of Finance's proposed plan to increase tax rates and impose taxes on basic necessities has been rejected by various groups. One of them, Member of Commission XI Willy Aditya. He said raising tax rates in the midst of the pandemic would have a bad impact on the Indonesian economy as a whole.

The deputy chairman of the NasDem Faction at the DPR RI emphasized that his faction was solidly opposed to the Ministry of Finance's plan. He assessed that Sri Mulyani's plan to increase the tax rate would add to the burden on the community.

"The NasDem faction rejects the Minister of Finance's proposed plan to increase the tax rate. We will fight for this if such a plan is actually proposed to the DPR, we have emphasized it from the start," he said in a written statement, Friday, June 11.

Willy believes that tax revenue can still be boosted by other means than increasing the rate.

"International commodity prices have also started to improve. Revenue from the customs side also shows a positive trend. So the choice to increase tariffs is simply a compass cut option," he explained.

According to Willy, it is necessary to improve regulations that are the support for increasing income from taxes. However, the regulation in question is not an increase in tax rates. But regulations to increase taxpayer compliance, ease of collection and tax reporting, and speed of payment by taxpayers.

"Regulatory improvements are to increase compliance and ease of paying taxes. It is not wise to increase tax rates when people are struggling to maintain the source and value of their income," he said.

Moreover, said Willy, the value of income will decrease if it is accompanied by an increase in tax rates. This plan will actually reduce public spending.

The Ministry of Finance, said Willy, needs to study more thoroughly the sources of state revenue to finance the state budget without having to raise tax rates. In terms of national production, the Ministry of Finance was also asked to find a way to keep it stimulated. The foreign trade balance must continue to be pushed to generate a surplus.

"The Minister of Finance sits down and cooperates with other ministries so that they can also reap income from efforts to encourage a surplus of foreign trade and other businesses," he said.

Willy asked the Minister of Finance Sri Mulyani to think about more strategic and creative things to seek state revenue. So that it does not add to the burden on society in these difficult times.

"Don't increase the tax rate that burdens many people who actually become the basis of support for the government," he said.