While economists and government officials are upbeat on the positive impacts of tax amnesty program, a number of non-government organizations are unhappy, seeking to file a judicial review at the constitutional court this week to oppose the amnesty program.
The tax amnesty bill, which was approved by the House of Representatives last month, is now awaiting President Joko “Jokowi” Widodo’s signature before it can be deliberated as law.
The amnesty program, which offers “generous” penalties for wealthy individuals and companies if they are willing to declare their assets and repatriate their money into Indonesia, is expected to help offset the expected weak taxation revenue this year as well as helping to alleviate restrictions on government spending, according to analysts.
However, it is not the case for representatives from civil advocate groups Yayasan Satu Keadilan (One Justice Foundation) and Serikat Perjuangan Rakyat (People’s Struggle Union).
“We will file a judicial review against tax amnesty law to the constitutional court. Once this law is signed by President Jokowi. We will register [the judicial review] on July 11,” YSK coordinator Sugeng Teguh Santoso said in a press release sent to journalists in Jakarta on Monday (10/07).
He said tax amnesty only benefits tax dodgers and this law could potentially trigger massive money laundering moves by rich individuals.
“This law is a red carpet for tax dodgers,” Sugent said in the release.
He also criticized the short-lived effectivity of the law, which is set only to last until March 31, 2017.
“In my career for being a lawyer, I have never seen a law that is in effect in so short period of time. There is a temporary law, which is a regulation in lieu of law [Perppu], but not like this law,” Sugeng said.
Sugeng is also the secretary general of Indonesian Advocates Association, or Peradi.
“We need to ask about this [short lived-law] to state administrative law experts. The principle behind a law to be enacted is that it should accommodate notions or thoughts that can live long, or answers a nation’s need in the future,” he said.
According to its official website, the Bogor-based civil advocate group was established in February 2014. The group has been involved in legal assistance for labor activists criminalized earlier this year and is active in health, education and cultural affairs.
Meanwhile, Serikat Perjuangan Rakyat, has been active in advocating people evicted from their homes in Jakarta for government-initiated infrastructure projects.
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