Chronology Of The MUI Fatwa On The United Nations And Rano Karno's Response: Local Government Awaits Central Decision

Deputy Governor of Jakarta Rano Karno (Diah Ayu/VOI)

JAKARTA - Deputy Governor of DKI Jakarta Rano Karno responded to the fatwa of the Indonesian Ulema Council (MUI) regarding land and building taxes (PBB) which were deemed unfit to be collected repeatedly. Rano emphasized that policies regarding the United Nations are the authority of the central government, not local governments.

Rano explained that the tax collection mechanism has been regulated by law, so that local governments do not have the authority to unilaterally change the levy scheme.

"It must be a decision (the central government). Taxes are a central component. Regions have taxes, but they are a component of the law. Yes, if you really want to evaluate it, it must be evaluated," said Rano at Pullman Jakarta Central Park, West Jakarta, Tuesday, November 25.

He ensured that the DKI Provincial Government would follow the provisions if the central government revised the rules related to the Rural and Urban UN (PBB-P2). "Of course we will follow if the center has to do that," said Rano.

Rano also assessed that the DKI Provincial Government has provided various incentives sourced from tax revenues, including public services and assistance programs such as free transportation, the Jakarta Smart Card (KJP), and the KJMU.

"When we talk about incentives, it's not just buildings. Transportation incentives, KJP, KJMU incentives. Well, that's the tax component given for that," he explained.

He did not deny that the UN issue highlighted by MUI opened a space for debate. "It is impossible for a country without tax. Life from there," he continued.

Previously, MUI issued a fatwa related to fair taxes following public unrest over the increase in the UN which was considered unfair. This fatwa was read out by the Head of the MUI Fatwa Division, Asrorun Niam Sholeh, at the XI MUI National Conference in Jakarta, Sunday, November 23.

MUI assesses that taxes should not be borne by basic needs such as basic necessities, houses, and the earth inhabited by the community. "So the tax collection on something that becomes a basic necessity ... does not reflect justice," said Asrorun Niam.

According to MUI, taxes should ideally only be borne by residents who have financial capacity, at least the equivalent of gold zakat nisab of 85 grams.

MUI recommends: