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JAKARTA. Government expects to complete the revision of the Law No 20/1997 on non-tax state revenue (PNBP) in an immediate time. It is expected that the revised law will jack up the amount of non-tax state revenues.
Director of Non-Tax Revenues at Directorate General of Budget Affairs Mariatul Aini said that the revision included four strategic issues. First, the process for determining non-tax state revenue tariff. To date, the tariff of non-tax revenue must be determined under Government Regulation. The tariff determination itself takes a long time period to process.
Therefore, ministries and institutions are reluctant to intensify and to extend the types and tariffs of non-tax revenue. “In the future, the tariff determination will be regulated under Ministrial Regulation so that the process becomes shorter”, Aini said.
Second, the strengthening of verification and inspection, mainly in non-oil and gas natural resources sector.
According to Aini, to date the government is struggling to verify the taxpayers. Every year, Financial and Development Monitoring Agency can only monitor less than 100 of 17,000 revenue payers in the sector of non-oil and gas natural resources.
Third, the regulation on incentive provision to institutions, which manage the non-tax revenues. The provision of incentives is expected to encourage ministries and institutions to increase the amount of non-tax state revenues. The absence of incentives has led to reluctances in ministries and government institutions to implement the target for non-tax revenues in a realistic manner.
Fourth, law enforcement in non-tax revenues management. In this case, Aini said that government will impose firm sanction on ministries and government institutions, which fail to manage the non-tax state revenues in a proper manner.
Furthermore, Aini said that the revisions also include some other changes. For an example, the revision will expand the description of ‘non-tax state revenue’ from only ‘non-tax revenues’ to ‘non-tax and grant revenues’, since the Law on State Financial stipulates grant as a separated income.
The revision will also include the allocation of non-tax state revenues.
The existing regulation stipulates the allocation of the revenues solely to the unit, which generates the income. In the future, the revenues may be used by other units, which are still under the similar ministry or institution with the unit that generates the income.
“For an example, if Directorate General of Immigration generates non-tax state revenues, other Directorate Generals are allowed to use the revenues”, she said.
Need firm sanctions
General Secretary of Indonesian Forum for Budget Transparency (FITRA) Yenny Sucipto said that the revision of the Law on Non-Tax State Revenues missed several points.
First, the privilege for ministries and government institutions to determine the tariff of non-tax state budget is improper, on the grounds that it has ignored the budgeting right of the House of Representatives (DPR). “The government cannot simply determine the tariff without involving DPR”, Yenny said.
Furthermore, Yenny also highlights the absence of sanction for companies that fail to settle their obligations. The revision is more focused on ministries and government institutions that manage the non-tax state revenues. “Whereas, about 60% of foreign companies did not pay the royalties in 2015”, she added.
Article 26 of the draft of revision on Law on Non-Tax State Revenues stipulates the imposition of a fine of 2% of non-tax state revenues payable in every month for those who fail to settle the payment of matured non-tax revenues. The sanction itself is valid for 24 months period.
Executive Director of Indonesia Resources Studies Marwan Batubara expects that the revision will stipulate firm sanctions for ministerial officials that misuse the non-tax state revenues, as well as the companies, which fail to settle the payment of non-tax state revenues.
(Muhammad Farid/Translator)
