The HPP Law should not be a trap for the middle class’s economic growth rate

Deputy Chairman of the DPD RI Sultan Baktiar Najamudin. Photo: DPD RI Public Relations

jpnn.com, JAKARTA – Deputy Chairman of the DPD RI Sultan Baktiar Najamudin said that the Law on the Harmonization of Tax Regulations (HPP) should not become a trap for the growth rate of the middle class which is currently being tested with the Covid-19 pandemic.

The senator from Bengkulu explained that the mechanism of the Law which is claimed to be a form of Tax Reform is like a cantrang that does not care about the size and type of fish and even has the potential to damage the coral reefs that are caught.

“Policies like this are certainly very resistant and risky for the lower middle class who are the majority group in our social structure,” said Sultan in a written statement in Jakarta, Friday (8/10/21).

The former Deputy Governor of Bengkulu gave an example, one of the rules in the law that taxable income starts at IDR 4,500,000.

“Of course we will be concerned if people, especially millennials who earn 5 million, have to bear the state’s fiscal burden by depositing 5 percent of their monthly salary,” he said.

At the same time, they will also incur more consumption costs next year because of the cut in the 3 kg melon gas fuel subsidy,” he said.

Therefore, the Sultan hopes that this law will not become a trap for the growth rate of the middle class which is currently being tested by the Covid-19 pandemic.

In fact, those who have been indicated to manipulate reports or even refuse to pay taxes are the middle and upper tax subjects. The danger is that the tax amnesty provisions in the HPP Law are only voluntary.

Deputy Chairman of DPD RI Sultan Baktiar Najamudin said that the Law on the Harmonization of Tax Regulations (HPP) should not become a trap for the growth rate of the middle class which is currently being tested with the Covid-19 pandemic.


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