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Legal Expert Denny Indrayana stated that taxation regulation issued by Finance Ministry is unconstitutional.

According to him, Constitution Article 23A which says “Tax and another forced levy for the State necessity being regulated in Act” doesn’t mean cannot be regulated with further regulation. “It doesn’t say that being regulated by Finance Ministry harms the Constitution,” he said at MK Plenary Room, Thursday (11/6).

He explained, the regulation of taxation as determined by the ruling of Finance Ministry aligns with delegation theorem. For him, the one prohibited is autonomy Ministry rule. “But if such delegation emerged, especially if it’s given by the Act, it is not prohibited,” he said.   

Meanwhile, former Tax Court Chief Anshari Ritonga said that interpretation of other services is to regulate income tax for unmentioned serviced so that income tax can be charged to such services.

Therefore, no newer regulation needed, because it has comprised the other services. “The purpose of the phrase is to anticipate social, economic, and technology change which are developing in our daily life, we want to keep fairness to all services and won’t miss one,” he said.

If every single service being mentioned, any change shall be anticipated by replacing which. While replacing Act will start over the process and no way can be held in limited time.

Previously, PT Cotrans Asia sees the phrase “other kinds of services” in Article 23 verse (2) UU PPh has overlapped others Acts which also regulate specified service, thus it trespasses the principle of law formation. Besides, prior to the revision, none of the article determines anyone to adjust taxation over “other services”, but only to determine the taxation subject’   

The Article 23 verse (2) UU PPh says:

“Further Regulation of other services as meant in verse (1) letter c number 2 is determined after Finance Minister’s Law”

Article 23 letter c number 2 determines, payment of engineer service, management service, construction service, consultant service, and other services are subjected to income tax as determined in Article 21, taxed by obliged side as much as 2% of bruto.   

Therefore, the Applicant asks MK to declare the phrase “Other kinds of Services” in the Article unconstitutional as along as interpreted without regarding other Acts which classify particular sector.  (Lulu Hanifah/mh/kun)

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