PKS Vows to Scrap Tax Income

TEMPO.CO, Jakarta - The Prosperous Justice Party (PKS) has pledged to fight for a program of tax elimination for labors or employees who have salary under Rp8 million per month if the coalition party wins the 2019 election.

“PKS initiates the program in the concern on the declining of people’s purchasing power, especially among people who have lower middle income for the recent years,” said PKS spokesperson Handi Risza in the PKS DPP building, Thursday, February 21.

Handi said that the main goal of PKS issued the program was based on the rising salary that was not equal with the price hike of basic needs and energy, such as fuel and electricity.

According to Handi, the weakening of buying power could be viewed from the stagnant growth of the Indonesian economy for the past four years, which was averagely 5 percent per year. “The realization is far below the promise of Joko Widodo government at 7 percent and the target of the 2018 RPJMN (National Medium-Term Development Plan) at 7.4 percent,” he added.

In addition, Handi continued, PKS initiated the program with consideration on the country's population that is dominated by productive ages and the low-middle class group that is susceptible to become poor.

“This group highly potentially determines the future of Indonesian economy. If it is well managed, it will produce a demographic bonus for the country’s economy in the future,” Handi remarked. Otherwise, Indonesia might face a demographic disaster.

In a press release received by Tempo, PKS explained the program of tax elimination for workers with a salary under Rp8 million was an adaptation to a policy of income tax payable from the government (PPh DTP) for State Apparatus (ASN), TNI and National Police officers, and retirees.

Based on PKS' calculation, the policy would not hamper the State Income significantly because the country could earn compensation from other sources that are improved due to the economic growth and the rising of people’s purchasing power, such as from value-added tax (VAT or PPN).

RYAN DWIKY ANGGRIAWAN