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Jakarta Post

Labor not subject to tax amnesty, govt says

News Desk (The Jakarta Post)
Jakarta
Fri, September 30, 2016

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Labor not subject to tax amnesty, govt says Workers hold a rally in Batam, on Sept. 29 to demand the Tax Amnesty Law be abolished. (tribunnews.com/Dewi Haryati)

T

he Finance Ministry’s director general of taxation, Ken Dwijugiasteadi, said that labor is not among the taxpayer groups that are targeted for participation in the tax amnesty program.

Ken explained that members of labor unions across the country usually had monthly incomes below the taxable level, or less than Rp 4.5 million (US$345) per month. The minimum wage of workers in Jakarta is Rp 3.1 million, while their in Bandung, West Java, it is Rp 2.6 million.

“Thus, labor is exempted from the tax amnesty program,” he told journalists in response to a rally launched by the labor confederation on Thursday against the tax amnesty program, which they called "unfair".

Labor groups from the Indonesian Prosperity Trade Union (SBSI) and the Confederation of Indonesian Workers Unions (KSPI) staged a rally in front of Constitutional Court in Jakarta, and several other cities, demanding the annulment of the Tax Amnesty Law.

They argued that the law was unethical as it benefits tax evaders whose sources of wealth are unknown and not obedient taxpayers such as workers who pay their income tax every month. “It is unfair,” KSPI chairman Said Iqbal said in Jakarta. (rez/ags)

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