Finance minister: new law on "KUP" may promote taxpayers` obedience

Jakarta (Antara News) - Finance Minister Sri Mulyani hoped the newly approved law on general arrangements and taxation procedures (UU-KUP) will be able to promote the obedience of tax payers and reduce manipulation by civil servants.

"With the new law it is expected that the tax payers will feel peaceful in registering themselves and making payments properly," the minister said after a limited meeting on efforts to bring order to state assets at the presidential office here on Tuesday afternoon.

Earlier on Tuesday morning, the House of Representatives in a plenary session passed the draft law on the third amendment to law No 6/1983 on general provisions and taxation produres into law.

Under the new law the tax payers will feel that their rights are being respected, and an explicit sanction is imposed on delinquent tax officials, the minister said.

However, Sri Mulyani could not guarantee that the tax revenue will increase and transferrable to the state budget in a short time.

"We will be monitoring the performance of the director general of taxation including the administrative reforms in the directorate general of taxation," she noted.

By combining the new law on KUP and administratuive reforms or modernization conducted by the directorate general of taxation, it was expected that tax system would run more efficiently.

"We may not be able to predict an increase in the tax revenue, but I feel that the prospects of the law are better in the short rather than in the long run," he said.

The minister said that the law on income tax (PPh) and sales tax (PPn) needed to be revised with a lower percentage for income tax. (*)
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