Legislators fail to pass tax mafia inquiry motion

The initiators of the tax mafia inquiry failed to win the House approval in its plenary on Tuesday after 264 lawmakers voted for while 266 others voted against the motion.

The tax mafia inquiry motion has been proposed as part of the efforts of legislators to investigate alleged tax mafia cases and flows of defrauded taxes that caused an annual loss of about Rp300 trillion to the state.

"Of the 530 House members who are present, 264 voted for the motion and 266 voted against it. Thus, the tax mafia inquiry motion is rejected," DPR Speaker Marzuki Alie said when closing the plenary meeting on Tuesday.

The initiators submitted the tax mafia inquiry motion to the House of Representatives early this month and was signed by 111 lawmakers. It was submitted by its initiators such as legislators Bambang Soesatyo and Nudirman Munir of the Golkar Party faction, Trimedya Panjaitan of the Indonesian Democratic Party of Struggle (PDIP) faction, Ahmad Yani of the United Development Party (PPP) and Lily Wahid of the National Awakening Party (PKB).

Initially, the initiators of the inquiry motion were optimistic that the House would accept the proposal because it would investigate alleged tax mafia cases and defrauded taxes.

According to Ahmad Yani of the PPP faction, leakage of the state revenues from the tax sector is estimated to amount to Rp300 trillion per year. This figure is quite big as it accounts for 30 percent of the state budget.

"If this leakage could be stopped Indonesia would be able to carry out better development and need not borrow money from abroad," he said.

Yet, it turned out that the House rejected it. Of the nine party factions in the House, five rejected with 266 votes and four voted for it with 264 votes.

Earlier, the decision was made through an open voting. In the voting, a total of 145 members of the Democrat Party (PD) faction were present and all voted against the proposal.

The National Mandate Party (PAN) faction members attending the voting totaled 43 and all voted against the proposal. The United Development Party (PPP) faction members who were present numbered 26 legislators, all of whom also agreed to reject the inquiry proposal.

Of the 28 members of the National Awakening Party (PKB) faction, 26 rejected the inquiry. A total of 26 members of Gerindra (Great Indonesian Movement Party) faction were present and all rejected the proposal.

In the meantime, a total of 106 members of the Golkar faction took part in the voting, all of whom were solid to vote for the motion. So was the Indonesian Democratic Party of Struggle (PDIP) where 84 of its members were present and voted for the move.

The same acceptance also came from the Prosperous Justice Party (PKS) faction where 56 of its members voted for the motion. Sixteen legislators from the People`s Conscience Party (Hanura) all voted for the inquiry proposal.

With regard to the rejection of the inquiry committee motion, the Golkar Party Faction (FPG) chairman, Setya Novanto, apologized to the Indonesian people for his party`s defeat in the voting.

"F-PG thanked the Indonesian people, particularly the PDIP, Hanura and PKS which had done various attempts to support the motion. On behalf of the Golkar Party, I apologize to the Indonesian people for the fact that we were defeated in the voting," FPG Chairman Setya Novanto said after the plenary.

Setya said that Golkar would soon carry out thorough evaluation on the government. His colleague, Ade Komaruddin who is also FPG secretary said when he read Golkar`s political statement that the inquiry motion was submitted not for discrediting individuals. 

"But it is merely intended to make improvement in the national taxation system particularly in the state revenue sector," said Ade adding that reforms in the national taxation system as a source of income for the state needed to be carried out.

Taxation system reforms since 1983 have not yet been able to solve the taxation problem comprehensively. "So far we are not yet able to comprehensively solve the taxation system," he said.

The tax cases involving former taxman Gayus Tambunan or Bahasyim indicated the leakage in the taxation sector required the tax systems should be improved comprehensively.

Yet, the attempt to set up an inquiry committee on tax mafia has been aborted at the plenary meeting of the House.

According to Ichsanuddin Noorsy, an observer of the Indonesian Political and Economic Association, the House rejection of the inquiry motion was proof of the strong lobbying by big tax dodger companies, including transnational firms, in the House of Representatives.

"This rejection will adversely perpetuate the exploitation of Indonesia`s economy by transnational companies through tax evasion which would also maintain the tax mafia modus operandi. The statement that the inquiry would cause damage to the investment climate well explains that indeed taxes have been manipulated," Ichsanuddin Noorsy said.(*)

Source: ANTARA