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Workers reject plan to lower non-taxable income limit
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Confederation of Indonesian Workers Unions (KSPI) chairman Said Iqbal (center) speaks to reporters during a rally on Aug. 31 against the Tax Amnesty Law, saying the law was unfair to workers and small and medium enterprises. (JP/Winda Ayu Charmila)
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he Confederation of the Indonesian Workers Unions (KSPI) has rejected a government plan to lower the limit on non-taxable income (PTKP) to increase tax revenue.
KSPI president Said Iqbal stressed that the move would burden low-income workers.
“We will reject the plan to lower the PTKP limit,” said Iqbal in Jakarta on Sunday as reported by Antara.
Currently, a person earning Rp 54 million (US$4,056) per year or Rp 4.5 million per month or less is exempt from paying income tax. The limit will reportedly be revised down to the level of minimum provincial wages or about Rp 3 million per month.
Read also: Raising non-taxable income threshold will boost economy: BIFinance Minister Sri Mulyani announced that her ministry had studied the possibility of lowering the limit because Indonesia had the highest non-taxable income limit in the world.
Iqbal called on the government to instead force rich people to pay their unpaid taxes and not further burden low-income workers.
He argued that people's purchasing power was already very low and lowering the non-taxable income limit would worsen people's purchasing power. (bbn)
