Jakarta, dpd.go.id - The Bill on Income Revenue Act (RUU PAD) will focus on policy discussions that can provide space for local governments to improve the economy and regional potentials so that it will be followed by increased taxes and user charges.

Working Meeting of Committee IV DPD RI with a number of observers of economic development namely Kodrat Wibowo, Riatu Mariatul, Ardiansyah and Djoko Hidayanto discussed about strengthening the authority to the region to be able to plan revenue and regional spending in accordance with regional needs.

Chairman of Committee IV DPD RI, Ajiep Padindang explained Committee IV DPD RI until now is still looking for input on the right formulation to be regulated in the PAD Bill, such as how much fiscal dependence and regional finance to the center and what steps should be taken to create harmonization between the center and the regions in the local taxes and retribution levies.

Member of Committee IV, Budiono said the provisions that will be regulated in the PAD Bill will in some degree be offensive on local taxes and levies. However, it is necessary to improve the percentage of tax and retribution levies that is too large while the revenue-sharing funds returned to the region are very small.

"The province takes too large portion, while the Regency / City only enjoys a small share of the revenue sharing fund provided by the central government. It means, there is injustice and needs to be addressed, " said this senator from East Java.

The issue of injustice is also expressed by Ahmad Henry from East Kalimantan. According to him, the proportion of taxes and levies in the regions is very unfair. Where one region will be required to deposit taxes to the central government in an unproportional amount to the revenue-sharing fund that will be received later.

"Regulations made by the central government make the region very dependent on the region. For example, the region must deposit 1 million while they only get 400. It's not fair, "he said.

Meanwhile Iskandar Muda from West Sulawesi said the increase in local revenue can not be realized without being encouraged by an increase in the regional economy. To that end, regional governments should be able to create policies that focus on empowering the region rather than tax and retribution levy.

"Regions should be able to create local regulations related to community empowerment, so that the economic sector can increase and automatically the taxes and retribution levies will also rise," he explained.

In response, economic development observer Ardiansyah said the PAD Bill should review the relationship between functions and financial relations between the center and the region. What happened during this time is the absence of synergy between function and financial relations of central and regional.

"For example, the infrastructure development such as roads is the authority of the Ministry of Public Works, but those who know the need for roads in the province is the provincial government, as well as for road needs in districts is the regional government. What happens is the wrong location to build the roads by the Ministry, so it is not on target, "he explained.

For that, it takes a policy that gives more authority to the local government to build the region in accordance with the needs that exist in that area. * Tho

12 Maret 2018