DPR PKS Faction: Instead Of Abolishing New Car Tax, It Is Better To Free Motorbike Tax And SIM Fees

Illustration. (Angga Nugraha / VOI)

JAKARTA - The government through the Ministry of Industry is proposing the Abolition of Luxury Goods Sales Tax (PPnBM) and Transfer of Motor Vehicle Title Fee (BBNKB) for new cars. The goal is to revive the automotive sector amidst the pressure of the COVID-19 pandemic.

DPR RI Commission XI member Hidayatullah assessed that in the midst of difficult conditions due to the COVID-19 pandemic, the government should have shown siding with the little people. Government assistance must target all groups, not just one particular group.

"Affirmation of partiality to the lowly people from the government must exist, not always that tax incentives are for certain groups," he said, in Jakarta, Friday, September 25.

Hidayat said the government should be able to ease the burden on the majority of the poor and the middle to lower class during the COVID-19 pandemic. Because, these two groups are very vulnerable to the impact of a pandemic. In addition, this group is also the most obedient of paying taxes, ranging from VAT to Pph 21.

"Direct tax incentives to them by eliminating two-wheeled taxes and SIM fees," he explained.

According to Hidayat, so far the government has exempted taxes on luxury goods, ranging from luxury homes, branded bags, cruise ships to yachts .

"Right, the reasons often put forward are to increase transactions, but in fact it results in a real loss of potential tax revenue and a loss of public justice," he said.

In theory, said Hidayat, in tax collection by the state there is a principle of equality . This means that tax collection must be proportional to the ability to pay taxes in order to fulfill a sense of justice.

According to Hidayat, the PKS faction in the official view of the faction has repeatedly asked the government to issue incentives for two-wheeled users, but the government's answer has always been floating.

"The government should not continue to avoid providing tax incentives for people affected by the economic recession. If the government is siding with the people, it is not impossible that the people's motorbike tax and SIM fees can be free," he said.

Previously, Minister of Finance Sri Mulyani Indrawati spoke about the proposed relaxation of the tax on the purchase of a new car by 0 percent amid the COVID-19 pandemic from the Ministry of Industry. He said this proposal would still be studied.

Sri said that currently, the tax incentives provided by the government in the midst of the COVID-19 pandemic are quite a lot in the national economic recovery (PEN). Even so, he said, the government was not closed to input.

"We will continue to see what is needed to stimulate our economy. We are always open to these ideas, but we will maintain consistency in policy," he explained, in a video conference with journalists, Tuesday, September 22.

Meanwhile, Minister of Industry Agus Gumiwang hopes that the government will provide a relaxation of the new car tax of zero percent until December 2020. Agus admits that he is sure that the tax cut for the purchase of a new car can boost people's purchasing power. The aim of this proposal is to recover sales of automotive products that had fallen during the pandemic.

"If we pay attention so that people's purchasing power can be helped by tax relaxation, we will apply it. Then in turn, it can help the growth of the automotive manufacturing industry," he said, through a written statement received by VOI , in Jakarta, Monday, September 14.

The automotive industry's performance in the first half of 2020 was slow compared to the same period last year. This has happened because of the impact of the COVID-19 pandemic that has occurred since March. However, said Agus, in the second semester of this year, positive developments began.

Furthermore, Agus said that his party hopes that the tax relaxation can be implemented immediately so that it can spur the performance of the automotive industry in the country and restore the national economy.

"The activities of the automotive industry have a wide multiplier effect , ranging from large employment absorption to empowering business actors in other sectors. The automotive industry has so many derivatives. There are so many tears 1, 2 tears ," he said.