Sri Mulyani Explains The Reason For The Tax Cluster Entering The Job Creation Law

Minister of Finance, Sri Mulyani Indrawati. (Photo: Ministry of Finance)

JAKARTA - Minister of Finance Sri Mulyani Indrawati spoke about the existence of a tax cluster in the Job Creation Act. This is due to developments in the process of discussing the policy with the House of Representatives (DPR).

Sri Mulyani said, from these developments it was decided that part of the Taxation Omnibus Law should be included in the Job Creation Omnibus Law. Especially for clusters that include the ecosystem of investment.

As is known, the government previously planned to issue a Tax Omnibus Law outside of the Job Creation Law.

"Part of the Taxation Omnibus Law has been included in Perppu No. 1/2020 which has actually been enacted as law," he said, in a virtual press conference, in Jakarta, Wednesday, October 7.

However, Sri Mulyani said, because some of the Taxation Omnibus Laws were not included in Law Number 2 of 2020, the provisions were included in the Job Creation Law. This has also gone through joint discussions between the government and the DPR.

"So, if someone states that this is an inclusion of articles from the Taxation Omnibus Law, that is not true. The government together with the DPR, jointly discuss and this is also between commissions and also with Baleg," he said.

Previously, the Head of the Fiscal Policy Agency of the Ministry of Finance (Kemenkeu), Febrio Nathan Kacaribu, confirmed that the discussion of the Taxation Bill (RUU) or the Taxation Omnibus Law was included in the discussion of the Job Creation Omnibus Law. Even all the important points in the Tax Omnibus Law are also included in one section.

Febrio said that according to him, the merging of the two broom rules was not a problem. This is because these two regulations are aimed at facilitating investment in Indonesia.

"The taxation Omnibus Law has entered the Cipta Kerja cluster. The taxation cluster Omnibus Law has indeed been prepared in advance and can finally enter the Job Creation Omnibus Law. So it doesn't have to be separated," he said, in Jakarta, Thursday, October 1.

For your information, the Omnibus Law on Cipta Kerja itself contains 15 chapters and 174 articles. Initially, the Job Creation Law included 79 laws, but in its discussion it was changed to 76 laws. There were seven laws abolished, as well as four additional laws.

There are three of the four laws added regarding taxation, namely Law Number 6 of 1983 concerning General Provisions and Tax Procedures in conjunction with Law Number 16 of 2009, Law Number 7 of 1983 regarding Income Tax jo. Law Number 36 Year 2008, Law Number 8 Year 1983 concerning Value Added Tax for Goods and Services and Value Added Tax and Sales Tax for Luxury Goods Jo. Law Number 42 of 2009.