MPR Leaders VAT Discourse Values Basic Material Violated Please 5th Pancasila, Open To Be Sued!

Deputy Chairperson of the Indonesian People's Consultative Assembly from the PPP faction Arsul Sani (Photo: DOK ANTARA)

JAKARTA - Deputy Chairman of the MPR RI from the PPP faction, Arsul Sani, questioned the government's discourse to apply a value added tax (PPN) on basic commodities from the agriculture, plantation, forestry, livestock and fishery sectors.

The reason is, the discourse has the potential to violate the 5th principle of Pancasila, namely Social Justice for All Indonesian People.

According to him, the constitutionality of the policy will open up problems if it is actually included in the KUP (General Tax Provisions) Law.

"This policy is open to being challenged with arguments that contradict Article 33 paragraph 4 of the 1945 Constitution of the Republic of Indonesia, particularly related to the principles of togetherness, efficiency with justice and maintaining the balance of national economic unity," Arsul told reporters, Thursday, June 10.

The chairman of the DPR's PPP faction reminded that some time ago the government had relaxed its tax policy by minimizing the imposition of value added tax on luxury goods (PPN-BM) on certain categories of cars.

"In fact, only some Indonesians will benefit from this policy, especially those with upper middle class status, who have the ability and purchasing power for cars that get VAT-BM relief. This means that the government is willing to lose one of its sources of fiscal income," explained Arsul. .

However, according to the member of Commission III of the DPR, if to cover the loss of fiscal resources, the Government replaces it by increasing the tax burden on basic goods that are the livelihood of all people, then the 'social justice' side for all Indonesian people should be questioned.

Meanwhile, in terms of the constitution, added Arsul, the policy of providing VAT relief in certain sectors that are not the interests of all the people, then replacing the loss of fiscal resources by imposing VAT on sectors that actually intersect with the interests of all the people can be seen as contrary to constitutional norms.

Regarding the principle of togetherness, fair efficiency and the necessity to maintain the balance of national economic unity.

For this reason, said Arsul, he appealed to the government, especially the Ministry of Finance, to thoroughly conduct a study in terms of the basis and ideology of the state and the state constitution.

"Let's reflect our Pancasila in a real government attitude by not making policies or laws that violate Pancasila and our constitution," said Arsul.