Jakarta (Antara Bali) - Bank Indonesia (BI) said there is no cause
for worry about any move to file legal suit with the Constitutional
Court against the tax amnesty law.
Central Bank Governor
Agus Martowardojo said the government and the House of Representatives
already considered such move when they gave their approval for the new
law.
"I have seen there is always move to file a legal
suit with the Constitutional Court against any new law. Therefore, I
think it is just normal," Agus said here on Monday.
Agus
said the tax amnesty law approved by the House last month, had brought
about positive sentiment resulting in strong inflow of foreign capital
into the domestic financial market.
The rupiah value
strengthened against the U.S. dollar with the growing inflow of foreign
capital reaching Rp97 trillion until June 24, 2016, he added.
He said the new law has also succeeded in cushioning the impact of
global financial turbulence triggered by Britain pulling out of the
European Union in what was called Brexit.
Last Sunday, a
group of people of Yayasan Satu Keadilan, and Serikat Perjuangan
Rakyat Indonesia (SPRI) and a number of individuals , said they would
file a law suit against the tax amnesty law with the Constitutional
Court.
They claimed the law was not fair to the people and that it facilitated tax criminals instead of punishing them .
Earlier an analyst from the State run Gajah Mada University Awan
Santosa said the law was against the country's 1945 Constitution.
The law is expected to result in large fund repatriation to the country by rich Indonesian depositing funds abroad.
Awan said instead of investigating the sources of the suspicious
assets, the government through the law would provide protection for
trans national economic crimes.
Investigations should be
made, which of the assets were a result of embezzlement of state funds
that should be returned to the state, the director of the Mubyarto
Institute said.
He said potential state revenue from the
tax amnesty of around Rp165 trillion are not comparable with the
estimated suspicious assets of Rp4,500 trillion to Rp11,400 trillion
stashed away abroad over the past tens of years.
If the
money were a result of crimes or embezzlement of state fund the owners
had committed crime and responsible for impoverishing the people, he
said.
Meanwhile, the Forum of Indonesia for Transparency
of Budget (FITRA) led a group of people taking to the street
protesting the law with a theme 'Let us take over People Sovereignty
Over Budget."
FITRA manager Apung Widadi said the law is against the Law No. 17 of 2013 on efficiency and transparency in finance.
However, a tax administration professor of the state run University of
Indonesia Gunadi said the new tax amnesty law is in line with the
country's 1945 Constitution.
"It is based on the 1945
Constitution, therefore, no one should reject it," the professor said
commenting on protests against the law by FITRA.
Gunadi
said FITRA had been wrong in interpreting the tax amnesty law, which was
clearly based on the Chapter 23A of the state Constitution.
He said some people or groups may see the new law as unfair as they
think tax evasion is a crime and the perpetrators should be punished
as criminals.
He said the law would greatly benefit the
nation as the fund from repatriation expected as a result of the
amnesty could help cut the deficit in the state budget and finance the
government's development programs . (WDY)
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