BULD DPD RI Hopes HKPD Law Can Improve Regional Economy

18 January 2023 oleh admin

JAKARTA, dpd.go.id - The Regional Legislative Affairs Agency (BULD) DPD RI assesses the birth of Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD), brings hopes of creating synergies between regional governments (pemda) and the central government. On the other hand, this law actually faces big challenges for regional governments.

"This law is able to encourage an increase in people's welfare and sustainable economic growth. However, the local government is facing enormous challenges," said Deputy Chairman of BULD DPD RI Abdurrahman Abubakar Bahmid when opening the RDPU with Tax Experts at the DPD RI Building, Jakarta, Wednesday (18/1).

According to the senator from Gorontalo, the regional government's challenge is changing the range price mechanism which is counterproductive to the spirit of tax regulation in creating a conducive investment climate. "As a result there is a reform policy in terms of types, tariffs, and procedures for collecting regional taxes and regional fees (PDRD) in the regions," he said.

In line with this, he continued, in the realm of forming regional regulations governing regional taxes and regional levies. The HKPD Law also mandates the existence of an evaluation stage which is carried out in stages before the regional regulations that are formed can be implemented by the local government. "This regulation regarding the evaluation process raises stages that can make it difficult for local governments to exercise the authority to manage taxes and fees in their regions," added Abdurrahman Abubakar Bahmid.

Meanwhile, DPD RI Member from West Sumatra Province Muslim M Yatim assesses that so far the regions have not been able to move with central regulations. Moreover, the birth of the Job Creation Law has added to the 'suffering' of regional authorities. "The Job Creation Law has added to the suffering of regional authorities. So I hope the HKPD Law can bring fresh air to the region," he explained.

DPD RI member from Aceh Province Abdullah Puteh questioned that national taxation provides strong support to the regions. The fact is that until now the regions are still experiencing financial difficulties, so a special strategy is needed in the taxation sector. "We need a special strategy to increase local revenue (PAD) so that it becomes a hope for the region," he said.

On the same occasion, Member of the Ombudsman Robert Na Endi Jaweng said that PDRD after the HKPD Law has the potential to increase PAD. When viewed from fiscal incentives, this law is believed to be able to encourage regional governments to provide fiscal incentives to business actors. "This fiscal incentive is a concrete effort in realizing the regular function of taxes and fees, has the potential to increase investment and PAD," he said.

Head of the Political Cluster on Taxation, Welfare and National Resilience Haula Rosdiana explained that the issuance of the HKPD Law had implications for adjusting material tax law and the formal PDRD tax law. As a result, there was a decrease in administrative and compliance costs, which had implications for consumption-based regional tax restructuring. “Restructuring into Certain Goods and Services Tax (PBJT). In addition, there is a rationalization of fees from the original 32 types of services to 18 types of services," he explained. *fi