'It's Hard To Get PAD Finally Burdens The People,' Highlights Sharp DPR Members Regarding The Increase In PBB-P2 250 Percent In Pati

Illustration-(DOC ANTARA)

Member of Commission II of the Indonesian House of Representatives Ahmad Irawan highlighted the polemic on the discourse of increasing Land and Building Taxes in rural and urban areas (PBB-P2) in Pati Regency, Central Java to 250 percent which drew protests from a number of residents.

According to him, the policy plan reflects structural problems in financial relations between the central and regional governments which ultimately burden the people.

Irawan said that in the law, the rules regarding taxes and levies do not explicitly regulate the nominal amount, but are based on the Tax Object Selling Value (NJOP). On the other hand, the need for regions to increase Regional Original Income (PAD) is not comparable to the fiscal space they have.

"I understand what the Regent is thinking. Large employee spending and all kinds of things. But the regional head space makes the policy to increase PAD is very small because the big ones have been taken by the central government," said Irawan when contacted on Friday, August 8.

He added that local governments are faced with demands to be fiscalally independent, but the choice of sources of income is very limited.

On the one hand they are asked to be fiscalally independent. But all that remains is parking fees, the UN. The others have been taken by the central government," he said.

The politician from the East Java V electoral district gave an example of the food sector. Local governments, according to him, do not get a share of agricultural products that should be able to boost PAD.

"For example, Karawang, Sidrap, South Sulawesi can produce 1 million tons of rice, but there is no profit sharing. What is there is only sharing of mining and oil and gas products," he said.

Because the limited fiscal space, continued Irawan, in the end local governments tend to rely on the tax sector to increase income, including the United Nations, which directly impacts the community.

"In the end, what is available is only taxes and levies. Because outside of that, it's just a tax on motorized vehicles. So it's hard to add PAD. In the end, it burdens the people in the regions," he said. .

According to Irawan, it is necessary to rearrange the distribution of natural wealth and regional potential so that it is not only concentrated in the central government. He encouraged that there be new formulations for sharing products from agriculture and other resources to the regions.

There should be a formulation regarding product sharing for produce products. Don't all go to the center, but there are also regions for PAD to also increase," he said.

Irawan emphasized that the root of this problem is a long-standing structural problem. Therefore, he encourages regional autonomy to be reformulated to make more space for regional policy exploration and innovation.

"If we don't want this to keep repeating, we have to reorganize our regional autonomy, so that the regions have exploration space and policy innovation," he concluded.