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Workers unite to launch new Tax Amnesty Law challenge

Laborers have become the latest party to throw a punch at the Tax Amnesty Law as they appealed for a judicial review at the Constitutional Court on Friday, following in the footsteps of other groups that have already submitted legal challenges

Prima Wirayani (The Jakarta Post)
Jakarta
Sat, July 23, 2016

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Workers unite to launch new Tax Amnesty Law challenge

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aborers have become the latest party to throw a punch at the Tax Amnesty Law as they appealed for a judicial review at the Constitutional Court on Friday, following in the footsteps of other groups that have already submitted legal challenges.

Some 200 labors from Pulogadung in East Jakarta, Bekasi and Karawang in West Java, staged a rally in front of the Constitutional Court to accompany the filing of the review appeal.

Under the scorching sun, they waved the flags of their respective organizations and chanted labor songs, as police officers guarded the rally.

They comprised members of several labor unions, including the Confederation of Indonesian Workers Unions (KSPI) and Indonesian Prosperity Trade Union (SBSI), that were listed as plaintiffs in the judicial review.

KSPI head Saiq Iqbal blatantly accused the law of hurting the sense of justice of around 44.4 million formal laborers and over 100 million informal laborers across the country.

“We are here on behalf of the taxpayers. Our legal standing is clear. We see a cut in our salary every month for income tax. We are always on time in paying the tax and we never evade the regulation.”

He claimed that the government had chosen to roll out the red carpet for employers that ignored tax requirements and traded equality before the law for the sake of boosting economic growth and controlling the budget deficit.

The plaintiffs demand the Constitutional Court annul several provisions within the law, namely Article 1 point 1 on the definition of tax amnesty, Article 3 paragraph 3 on exemption of tax amnesty subjects, and Article 4 on redemption rates imposed on taxpayers wanting to apply for the tax amnesty.

The laborers’ appeal came a week after similar appeals were filed by three other groups, including the Indonesian People’s Struggle Union, and almost a month after the law was endorsed at the House of Representatives.

Hariyadi Sukamdani, chairman of the Indonesian Employers Association (Apindo), said it was the laborers’ democratic right to challenge the law.

Apindo has thrown support behind the government regarding the amnesty and an earlier Apindo survey showed quite a high level of interest among businesspeople to join the program.

Meanwhile, as of Friday or the fifth day of the law’s full implementation, the government appointed only four banks as “gateways” from a list of 18 banks, 18 investment managers and 19 securities firms.

The gateways are tasked with managing the previously undeclared wealth returning to Indonesia.

To be officially appointed as gateways, the firms have to sign a contract with the finance minister that stipulates an obligation to report any investment developments to the Taxation Directorate General.

State-owned lenders Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), and private lender Bank Central Asia (BCA) signed their contracts on Thursday.

A Finance Ministerial regulation lays down the gateways’ obligations, including a requirement to open special accounts for participating taxpayers using their services. (mos)

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