UNAIR NEWS – The government has officially enacted a regulation regarding adjustments to income tax regulation as stipulated in Government Regulation (PP) No. 55 of 2022. This PP is a derivative regulation from Law Number 7 of 2021 concerning Harmonization of Tax Regulations (HPP) which was passed in October last year.

In this regulation, the government has increased taxable income (PKP) to a cumulative Rp. 60 million per year and will be subject to a 5 percent rate. Previously, a 5 percent rate was imposed for PKP with a cumulative Rp. 50 million per year.

Meanwhile, the Non-Taxable Income (PTKP) has not changed, Rp 54 million per year. This is a good signal because previously, Rp 50 million income was taxable, now, it has been increased to Rp 60 million.

To UNAIR NEWS, January 4, 2023, Universitas Airlangga (UNAIR) economist, Drs Djoko Dewantoro SE MSi Ak CA, welcomed the regulation. According to him, the rule is very reasonable. If previously the PTKP rate was higher than PKP rate, now the PKP rate is higher than the PTKP rate.

“So this is a form of improvement in the law. Furthermore, it is a cleverness of the government that it increases welfare not by increasing wages but by increasing take-home pay (which workers receive, ed ) as the tax layer increases,” he explained.

Progressive rates

The government also increased income tax to 35 percent from 30 percent for people earning above 5 billion. For Djoko, this is very reasonable with the progressive tariff mechanism implemented by the government.

“That’s logical, meaning it’s a consequence of a system. Those that are low are subject to low taxes, then layers above 5 billion are subject to 35 percent, that adds up,” he said.

Tax education

However, he regretted that there were still a lot of fake news regarding this regulation. In fact, the latest tax policy will benefit workers. With the latest regulations, workers with a salary of 5 million per month will only pay taxes of 25 thousand per month.

“The term is not salary, what is deducted from tax is only taxable income (PKP), that’s the guideline. The public must understand that salary is not the same as taxable income,” added the Deputy for Tax Accountant Division of IAI for the East Java Region.

He hopes, in the future, education about taxation will be intensified. Because people are ignorant about taxes, thus, a lot of hoaxes occur. On the other hand, the government must also be honest when there is an overpayment, it must be returned immediately without being complicated because it is the people’s right.

“If we love our country, we can’t be ignorant (about taxes, ed ). Instead, the government should make the tax law as easy as possible,” he concluded. (*)

Author: Afrizal Naufal Ghani

Editor: Nuri Hermawan