JAKARTA. The discussion of the National Amnesty Law Plan sparked controversy. Although it has been changed to tax amnesty, this candidate is considered not applicable in Indonesia. Not to mention the news, the proposed law will be bartered with the revision of the KPK Law with parliament. Discussion on the National Amnesty Bill (RUU) seems to be continuing. The Legislative (Baleg) continues to discuss this bill even though there have been many rejections in the community. Answering several objections, the Baleg and the government have changed the previous provisions.

First, it is invalid to include general crimes such as corruption and other major crimes. Second, reduce the percentage of ransom from 3% to 8%, to 2% to 6%. Third, there is a guarantee that submitted taxpayer data will not fall to other parties.

The news received by KONTAN, the House of Representatives and the government insisted on discussing the national amnesty bill because it had been bound by an agreement. In this case, the DPR presented a revised draft of the Corruption Eradication Commission (KPK) Law, while the government submitted a National Amnesty Law plan. This agreement continues even though President Joko Widodo canceled the discussion on the revision of the KPK Law because it was not a priority and made it in 2016.

The government’s plan and the House of Representatives to discuss the tax amnesty clause, aka tax amnesty in the National Amnesty Bill, has also been criticized by several NGOs working in the mining sector. Because the prospective policy is considered unfair and creates legal uncertainty. Wiko Saputra, Economic Policy Researcher at Publish What You Pay Indonesia (PWYP) said, the amount of illegal money flows in Indonesia reached Rp 227.75 trillion in 2014. The mining sector accounts for the largest portion of cash flow aimed at avoiding or attempting tax evasion, totaling around Rp 23.89 trillion.

According to him, the flow of illegal money in the mining sector is generally through fake invoice transactions, knowing this is done by illegal mining alias illegal mining. It also did not rule out the possibility of tax evasion crime involving mining companies both oil and gas (oil and gas) as well as large-scale minerals and coal. As an illustration, the realization of tax revenue data in the mining sector is only IDR 96.9 trillion. “Compare with the gross domestic product (GDP) of the mining sector which reached Rp 1,026 trillion, meaning that the ratio of tax revenue to GDP (tax ratio) was only 9.4%,” Wiko said, last weekend.

Therefore, Wiko objected to the plan to grant tax amnesty to entrepreneurs including those in the mining sector who have the potential to be involved in illegal mining and environmental damage. “Seeing the practice of tax crimes committed by mining companies, it is very unfair if they are given amnesty,” he said.

Rachmi Hertanti, Indonesian Researcher for Global Justice (IGJ) added, the government discourse granting tax amnesty and other financial crimes for entrepreneurs, including mining entrepreneurs, will further perpetuate corporate human rights violations in Indonesia. According to her, tax amnesty is not the right solution, in an effort to increase state revenue.

Tax observer Yustinus Prastowo said that in order to improve tax revenues and attract assets of Indonesian citizens abroad, the government should focus on law enforcement aspects by taking firm action, including mining companies that do not have NPWP and do not pay taxes. In addition, taxation regulations and administrative systems were improved and strengthened supervisory institutions. The government should focus on fixing the four things first.

Source:  Kontan