PKS Party Rejects Discussion Of General Provisions on Taxation Bill, How Can Medical Health Services, Basic Needs, And Education Are Taxable?

PKS politician Mardani Ali Sera (Photo: DOK ANTARA)

JAKARTA - The Prosperous Justice Party (PKS) has firmly rejected the discussion of the Draft Law on General Provisions on Taxation (RUU KUP).

PKS Central Executive Board (DPP) chairman Mardani Ali Sera explained the reason his party rejected the KUP Bill or also known as the HPP Bill (Harmonization of Tax Regulations).

PKS, said Mardani, objected to the plan to implement the tax amnesty volume II. Where in the KUP Bill, the tax amnesty is packaged under the name of voluntary asset disclosure.

"PKS rejects voluntary asset disclosure, which, according to experts and the public, is the second volume of 'tax Amnesty'," said Mardani to reporters, Tuesday, October 5.

PKS, continued Mardani, rejected an increase in VAT from 10 percent to 12 percent. His party did not agree if basic necessities, medical health services, education services, and social services were included in the list of taxable goods or services (BJKP).

"Even though the government currently imposes a zero percent tariff, by becoming a BJKP, these goods and services can one day be subject to tax," he explained. The member of Commission II of the House of Representatives (DPR) said that PKS strongly objected to the addition of the tax burden on individual taxpayers. For example, in the KUP Bill, it is the imposition of a carbon tax for individual taxpayers.

"The carbon tax should only be imposed on companies that produce carbon emissions and other harmful substances, especially coal power plants, not including individual taxpayers," said Mardani.

PKS also rejects the expansion of excise which burdens the people. Such as plastic products and beverages containing sweeteners.

In addition, he continued, PKS has fought for the limit on non-taxable income (PTKP) to increase from IDR 4.5 million to IDR 8 million. However, the PKS proposal was rejected by the government.

PKS also wants a new norm, namely non-taxable gross income (PBTKP) for MSMEs, especially for MSMEs with a turnover of IDR 1 billion per year.

"Unfortunately, the government only approves PBTKP of IDR 500 million per year and only for individual taxpayers," said Mardani.