Law On Tax Amnesty Benefits People: Minister

Jakarta (Antara Bali) - Finance Minister Sri Mulyani said Law No. 11/2016 on Tax Amnesty benefited the general public while at the same time causing no disadvantage to the poor.

"It is very clear that the Tax Amnesty law did not harm the interests of the poor but benefitted the people in general," Sri Mulyani stated at the Constitution Court (MK) building here in Jakarta on Tuesday.

The minister made the statement at the MK session while representing President Joko Widodo, giving explanations during the judicial review of the law.

Minister Sri Mulyani pointed out that the tax amnesty law offers at least three benefits in the national interest. The first benefit is that the funds obtained through the tax amnesty program could be used to boost the country's economy.

"The redemption money obtained through asset repatriation could be used directly for national development," the minister added.

The third benefit of the policy will be the support to sustainable economic development which will eventually boost economic activities and raise people's purchasing power.

"So, it is clear that this law by no means causes any constitutional damage to any party," she stressed.

The court session at the MK building on tax amnesty law covers four cases brought by the petitioners, namely, the Indonesian People's Struggle Union, One Justice Foundation, three trade union organizations and an Indonesian citizen, Leni Indrawati.

All petitioners opined that Law No. 11/2016 is discriminatory in nature against all Indonesian people because it gives an impression of protecting tax evaders from paying taxes that were mandatory.

They also saw the policy as one that gives exclusive privilege to defiant taxpayers by freeing them from administrative sanctions, trial process and criminal punishment.

The petitioners asked the MK to comply with their proposals by  stating that Article 1, point 1; Article 3 point 3; Article 4; Article 21 point 2; and Article 23 point 2 of Law No.11/2016 have no legal effect and are against the 1945 Constitution. (WDY)