TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Clarity for taxpayers urgent

Apparently public pressure or media attention is a very important factor on whether a tax policy question will be addressed in a timely and definite fashion.

Glenn Polii (The Jakarta Post)
Premium
Jakarta
Tue, September 26, 2017

Share This Article

Change Size

Clarity for taxpayers urgent Apparently public pressure or media attention is a very important factor on whether a tax policy question will be addressed in a timely and definite fashion. (Shutterstock/File)

T

he highly publicized case of the novelist Tere Liye has created a rare opportunity for a public discussion on the tax system after he asked his publishers to stop selling his novels for the single reason of taxation. He contends that writers pay more than twice in income tax than other professionals such as doctors and artists.

He had written to various government agencies, including the Directorate General of Taxation (DGT), for an explanation, but his grievance fell on deaf ears and hence his decision to quit the business. The day after his Facebook post, the DGT issued a press statement saying that writers, like other professionals, are actually eligible for special treatment.

But why did it take so long for the DGT to give a definite answer to this issue?

Any decision regarding tax policy necessarily requires careful consideration, and that takes time. However, the Tere case, as one of many examples, might indicate a rather worrying trend. In July, the DGT exempted sugar from value added tax (VAT) only after industry leaders met with the tax office chief. The meeting itself was held after sugar groups staged protests.

More recently, the securitization of PT Jasa Marga toll road company was exempted from VAT after the CEO of the toll road operator complained to President Joko Widodo in a very public setting: during an event where the media was present.

Apparently public pressure or media attention is a very important factor on whether a tax policy question will be addressed in a timely and definite fashion.

Bowing to public pressure indicates that the government is willing to listen to the public, to acknowledge that competing perspectives are possible, even preferable. But is this the appropriate way to govern: by waiting for the public to voice their concerns and dissatisfactions openly and then rushing to calm the waters and issue belated official pronouncements?

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Clarity for taxpayers urgent

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000
{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.