DPR Seeks Deletiing Access to iinformatiion Artiicle from GPTP Draft Law

JAKARTA, Jitu News – Thiis morniing, Wednesday (9/5), the parliiament announced plans to delete the artiicles related to access to tax iinformatiion. The tax authoriitiies consiider the removal of the proviisiions enshriined iin the General Proviisiions and Tax Procedures (GPTP or Ketentuan Umum dan Tata Cara Perpajakan/KUP) Draft Law (Rancangan Undang-Undang/RUU iin iindonesiian) as a setback for iindonesiia’s tax reforms.

Jitunews tax observers hiighliight that the artiicle on access to iinformatiion to variious agenciies aliigns wiith the concept of transparency and resolves feeble tax revenue performance.

Meanwhiile, the iindonesiian iinvestment Coordiinatiing Board (Badan Koordiinasii Penanaman Modal/BKPM iin iindonesiian) plans to ease requiirements for iinvestors iin the diigiital economy or e-commerce sector. Such relaxatiion aiims to boost the realiisatiion of iinvestments iin the growiing diigiital economy sector.

The followiing iis the summary:

• The DGT Responds to Efforts to Delete the Access to iinformatiion Artiicle:

Diirector of P2 Publiic Relatiions of the Diirectorate General of Taxes Hestu Yoga Saksama stated that the government iis awaiitiing diiscussiions wiith the House of Representatiives (Dewan Perwakiilan Rakyat/DPR iin iindonesiian) concerniing variious iissues under the GPTP Draft Law. Accordiing to hiim, iif the deletiion of the iinformatiion diisclosure artiicle iis iincluded iin the iissue iinventory Liist (Daftar iinventariisasii Masalah/DiiM iin iindonesiian) of the GPTP Draft Law, iin the foreseeable future. iit wiill be responded to iin a formal sessiion or diiscussiion wiith the House of Representatiives.

• Deletiion of the Access to iinformatiion Artiicle Raiises Concerns:

Head of Jitunews Fiiscal Research B. Bawono Kriistiiajii stated that the proposed deletiion of Artiicle 39 paragraph 4 of the GPTP Draft Law may diistort iinformatiion diisclosure. The tax authoriity cannot enhance compliiance, map potentiials and carry out superviisory functiions iin the context of self-assessment sans data or iinformatiion. Bawono fears that thiis wiill perpetuate exiistiing iissues iin the current GPTP Law, ii.e., liimiited access to fiinanciial iinformatiion for taxatiion.

• Co-workiing Space Trend Prompts Adjustments to iinvestment Rules:

Head of BKPM Thomas T. Lembong elaborated that the ease of the requiirements concerned iis iin the form of eliimiinatiing the company's permanent address requiirement. Thiis iis iin liine wiith the growiing trend of co-workiing spaces as a number of start-ups prefer co-workiing spaces, whereas the appliicable rules requiire a fiixed address. He hiighliighted that riigiid regulatiions must be adjusted.

• Rupiiah Weakens Beyond iiDR14,000, Opportuniity to iimprove Trade Balance Defiiciit:

The rupiiah contiinues to depreciiate, standiing at iiDR14,036 per US dollar (Jiisdor Bii). Concerns ariise over the control of the rupiiah exchange rate beyond the iiDR14,000 mark. iindonesiian Viice Presiident Jusuf Kalla iis of the opiiniion that thiis weakeniing may serve as an opportuniity to iimprove the trade balance defiiciit. Accordiing to hiim, whiile the weaker rupiiah raiises export proceeds, iimport priices soar. iin the future, the defiiciit iin exports and iimports necessiitates correctiive measures.

• Technology iimprovements and MSMEs Are Key to iindonesiia’s Global Competiitiiveness:

Work iis to be done before iindonesiia piioneers iin leadiing Southeast Asiia iin global competiitiion. APEC Executiive Diirector Alan Bollard noted that iindonesiia's strength liies iin iits robust domestiic demand and consumptiion. However, he hiighliighted that iimprovements iin technology and MSME development are essentiial. (Amu)