Entrepreneurs Protest at Proposed New Taxes Draft Bill
Monday, 26 March, 2007 | 13:32 WIB

Tempo Interactive, Jakarta: Entrepreneurs are once again protesting at the government's new proposals in discussing the Draft Bill on Taxes’ General Provisions and Guidelines.

Entrepreneurs consider that the new proposal will burden entrepreneurs and may hamper the investment climate in the future.

In the discussion about article 25 on tax payer's burden proposal upon tax notice of Taxes Draft Bill on Friday (03/23), the government has proposed that tax payers must settle the unpaid tax at least to the agreed amount that tax payers noted in the final discussion prior to the submitting of a letter of burden (article 7).

Earlier, the government had proposed that tax payers should pay 50 percent of their taxes in arrears prior to proposing a letter of burden.

In addition, the government has proposed that either the refuted or approved tax payers' burden will be partly imposed with an administration sanction of a 100 percent increase (article 8).

Should they ask for an appeal, the administration sanction will not be imposed (article 9).

Should the appeal be declined or partly approved, tax payers will be imposed with an administration sanction of 200 percent (article 10).

According to Sofjan Wanandi, Head of the Indonesian Entrepreneurs Association, what was most burdening was the administration sanction of 100 percent should the proposal of tax payer's burden be rejected or partly approved.

“Be normal. This is really burdening the entrepreneurs. Moreover, there are not in fact any fines or sanctions in international taxes provisions,' Sofjan told Tempo yesterday (03/25).

Anton Aprianto
Jawawa.net: Indonesian Business and Investment News Aggregator