Member Of DPR PKS Faction: PPN For Basic Necessities Is Not Decided With A Speedy System Like The Omnibus Law

Gedung DPR RI. (Irfan Meidianto/VOI)

JAKARTA - The government's plan to collect value added tax or VAT on basic commodities or basic necessities has received attention from many parties, even though the policy in the taxation sector is still only a discourse. Member of Commission XI DPR RI Ecky Awal Mucharam also asked that this policy not be decided in a hurry like the Omnibus Law on the Job Creation Act.

As is known, VAT for basic necessities is contained in the plan to expand the VAT object as regulated in the Revision of Law Number 6 of 1983 concerning General Provisions and Tax Procedures (KUP).

"Don't be like the omnibus law, the system is speeding, the DPR is running smoothly now, 'everything is in the government carriage'. There must be a balance from the DPR, including the community," he said in a virtual discussion, Friday, June 11.

In addition, this politician from the PKS regretted the noise of the tax imposition plan for basic necessities. He said that this commotion was due to poor government communication.

Furthermore, Ecky said, ideally before the draft law is proposed, the government has already prepared a grand design and discussed it with parliament.

"Regarding the KUP Bill, we have to look at it, the government's communication must be improved. How difficult is it before the bill is entered, the grand design before the presidential letter is submitted, it will be discussed first," he said.

Reflecting on past experiences, Ecky said it was time for economic policies not to be made impromptu.

"So you have to be really honest in managing taxes, not according to requests and interests for a moment. Because often fiscal incentive policies are sudden, surprise, the last minute," he said.

Agree, CORE Indonesia Economist Piter Abdullah also assessed that there was a miscommunication regarding the tax imposition plan for basic necessities. According to Piter, the issue of VAT on basic necessities arose at an inopportune time, where people were facing difficulties due to the COVID-19 pandemic.

"The communication is so lame, the government is reactive, it should have realized from the start that this issue was sensitive, PPN for basic necessities, education. And if it should be done, the arguments should be prepared carefully," said Piter.

According to Piter, the imposition of taxes on basic necessities will reduce public consumption. This will have a negative impact on the national economy.

"Just taxing basic necessities will certainly have an impact on the community, this is planned for 1 percent. Even though 1 percent will still have an impact, firstly purchasing power, secondly psychologically. There are a series of things such as rising inflation, decreasing purchasing power, eventually decreasing consumption, having an impact on investment. ," he said.