The tax office announced Friday that most of the newly sworn-in members of the House of Representatives and Regional Representatives Council (DPD) are not registered taxpayers.
To settle this worrying development, the tax office says it will help out these high-profile individuals by setting up tax registration booths within the House compound.
Djoko Slamet Surjoputro, spokesman for the Finance Ministry's Directorate General of Tax, said Friday - a day after the inauguration of new House and DPD members - that the majority of 560 House members and 132 DPD members did not possess a tax identification number (NPWP).
"We found up to 60 percent of the new councilors had never applied to be taxpayers, which means they don't have an NPWP," Djoko told The Jakarta Post.
Not possessing a tax identification number does not necessarily mean the legislators have never paid their taxes. Most companies in Indonesia cover the income tax of their employees through a corporate tax identification number.
The tax office has since the start of the year required all eligible taxpayers to register themselves with the tax office and get a tax identification number.
At present, only 13 million Indonesians have tax identification numbers, according to the latest data from the tax office.
Existing regulations stipulate that starting this year, those who earn an income but do not have a tax identification number may face heavy fines.
Taking into account the lawmakers' lack of awareness, Djoko said, the tax office would set up two small booths inside the House complex to allow them to register.
The applicants just need to bring a copy of their ID card and fill out the necessary forms in a process Djoko said would take only about 10 minutes.
"We're just trying to help, because it'd be a crying shame if the people's representatives weren't registered as taxpayers," he said.
"As legislators, they've got to set a good example for the people. They'll have to get an NPWP, otherwise they'll be fined by the tax office, and those fines can be two to three times the income tax they're supposed to pay."
One of the newly elected legislators from the Democratic Party, speaking on condition of anonymity, said he did not know all citizens must have a tax identification number.
"I actually come from a remote area where people don't know anything about the NPWP," said the legislator.
The Democratic Party is fronted by President Susilo Bambang Yudhoyono, and dominates the House after winning the most votes in April's legislative elections.
Gayus Lumbuun, from the Indonesian Democratic Party of Struggle (PDI-P) and a member of the previous House's Ethics Council, said he believed the phenomenon of legislators not having tax numbers was not necessarily because they wanted to avoid paying their taxes.
"Perhaps those unregistered legislators were just ordinary people without an NPWP before they got elected," he said.
He added, however, that they would have to eventually register themselves and get a tax identification number. (naf)
The Jakarta Post
