It is based on the 1945 Constitution, therefore, no one should reject it."
Jakarta (ANTARA News) - A tax administration professor of the state run University of Indonesia Gunadi said the new tax amnesty law is in line with the countrys 1945 Constitution.

"It is based on the 1945 Constitution, therefore, no one should reject it," the professor said here on Thursday commenting on protests against the law by the Forum of Indonesia for Transparency of Budget (FITRA).

FITRA has 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.

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 instead of pardoned with redemption.

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 governments development programs.

"If successfully implemented the tax amnesty policy would contribute to improving economic redistribution," he said.

The fund from the capital repatriation could be used to finance development of infrastructure projects that would have multiplier effects, he said.

Economic activities would be brisker with development of infrastructure, manufacturing , property and other sectors that would result in higher tax revenues, he said.

Increase in tax revenue is the main goal of the tax amnesty policy, he said.

Tax observer from the University of Pelita Harapan Roni Bako also said that the tax amnesty law is constitutional.

Roni said those rejecting the law should study Chapter 23A of the state constitution instead of taking to the street.

Chapter 23A of the Constitution says that tax for the state is obligatory and may not be rejected, he said.

He said the target set by the government to post Rp165 trillion in revenue as a result of the tax amnesty policy is "very" realistic.

The target of Rp165 trillion is quite within reach especially as the state would receive redemption fund from the declaration and repatriation, he said.

Meanwhile Deputy Speaker of the House of Representatives Taufik Kurniawan said the tax amnesty law has brought about a good momentum.

It is a rare momentum to draw funds deposited abroad by rich Indonesians to be used in the country to finance development projects, Taufik said.

"The momentum is only once and only in nine months. As for the implementation, we leave it to the government," he said.

If the target of Rp165 trillion could be reached the problem over state budget deficit could be solved, he said.

He said nine of ten factions at the House of Representatives endorsed the the tax amnesty bill into law with only the Islamic PKS faction against.

He said he appreciated the position taken by PKS, "but we should go back to the mechanism of taking decision in the House."

Ecky Awal Mucharam, a PKS legislator of the Commission IX of the House warned that the repatriated fund should not create a hot money.

"The PKS faction wants the government to be careful that the fund should not become hot money in the domestic financial market," he said.

He said the fund could any time flow out disrupting the countrys financial stability.

Another PKS leader, deputy chairman of the People Consultative Assembly Hidayat Nur Wahid said the tax amnesty law is against the state ideology Pancasila as it does not give justice to the people.
(Uu.H-ASG/F001)

Editor: Priyambodo RH
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