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Agrarian law expert Aartje Tehupeiory as expert for the Petitioner delivering her expertise in the judicial review hearing of the Land and Building Tax (PBB) Law, Tuesday (13/3) in the Plenary Courtroom of the Constitutional Court. Photo by Humas MK/Ganie.

The Land and Building Tax (PBB Law) should only be imposed once during land purchase for residential or ownership purposes. If the tax is billed annually, it removes the people\'s right to their lands as citizens that is protected by the 1945 Constitution. It was conveyed by the agrarian law expert Aartje Tehupeiory as expert for the Petitioners in the follow-up session of the judicial review of Law No. 12/1985 on Land and Building Tax (PBB Law) held by the Constitutional Court (MK) on Tuesday (13/3). 

In addition, in her statement, Aatje explained that there should be an exception to the imposition of PBB for buildings that are used as residences. This is done to guarantee the rights of citizens. 

"Providing exemptions [of land and buildings tax on taxable objects reasonably used for residential homes or residence] makes it easier for the public to obtain land rights through the land office in which the residence is located to ensure legal and right certainty as well as providing benefits to the community," Aartje said before the Panel of Justices led by Constitutional Justice Maria Farida Indrati. 

Aartje also explained the essence of Article 4 paragraphs (1) and (2) of the PBB Law which she thinks is state guarantee of access for the people to residence. "The essence of the review of the articles on guarantee of access to residence is closely related to human rights. Implicitly, the 1945 Constitution recognizes the right to live as a human right," she said in the hearing of case No. 3/PUU-XVI/2018. 

In addition, Aartje added that a human right is a right that must exist for every person to be able to live properly as a member of society, in harmony with their dignity as a respectable person. "Therefore, a human right is a right that every person has, which in essence shall not be contested by anyone for any reason," she insisted. 

That, Aartje said, indicates that the 1945 Constitution that regulates the protection of the right to reside is neglected. Therefore, it is necessary to protect the right of the people as stipulated in the Basic Agrarian Law (UUPA) that the public and individual interests must be in balance and take into account the existing principles of land tenure and ownership as well as the protection afforded by the national land law to land and residential rights holders. 

"Based on the principle, every individual can be required to pay tax according to the existing provisions. For example, when buying land for residence, land tax can be imposed. Meanwhile, the building tax can be imposed on residents who live in their own homes," Aartje said. 

Funding Development

Meanwhile, the House of Representatives represented by Commission III Member, Arteria, explained that the PBB Law is the implementation of the provision of Article 23A of the 1945 Constitution and is in accordance with Article 28H paragraph (1) of the 1945 Constitution. He mentioned that tax is one source of development funding. If the source of funding is not available, then the development cannot or is difficult to run. 

"Development funding difficulties will make efforts to improve the welfare of the people difficult to realize. Therefore, it is natural that taxpayers are obliged to return some of the benefits [that they ejoy] to the state through taxes. Tax payment is also a manifestation of community participation and mutual cooperation in financing national development," he explained. 

Arteria also mentioned that the payment of land and building tax is one of the embodiments of national mutual cooperation in financing state and national development. Thus, he added, its imposition must take into account the principles of legal certainty, justice, and simplicity, and supported by tax administration system that facilitates taxpayers in fulfilling the tax payment obligation. 

The petition of case No. 3/PUU-XVI/2018 was filed by Jestin Justian, Ezra Prayoga Manihuruk, Agus Prayogo, and Nur Hasan. The Petitioners object to the obligation to pay the land and building tax as regulated in Article 4 paragraphs (1) and (2) of the PBB Law. According to the Petitioners, the a quo article is contradictory to the phrase “to reside” as stated in Article 28 of the 1945 Constitution. They request that the article be declared not legally binding and be revoked. (ARS/LA/Yuniar Widiastuti)

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