Clarity for taxpayers urgent

Glenn Polii
Staff member at the Directorate General of Taxation at the Finance Ministry

PREMIUM

Jakarta / Tue, September 26, 2017 / 09:39 am

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)

The 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 cas...