Transcript PROSES PENYUSUNAN DAN PERUBAHAN APBD

FISCAL REFORM (TAXATION) ON LOCAL GOVERNMENT
AND THE NEW ADMINISTRATIVE DUTIES
Oleh :
Dadang Suwanda, SE, MM, M.Ak, Ak, CA
MATARAM, 8 MEI 2015
1
FISCAL REFORM (TAXATION) ON
LOCAL GOVERNMENT AND
THE NEW ADMINISTRATIVE DUTIES
• CHANGES
FROM
CENTRALIZED
TO
DECENTRALIZATION SYSTEM
• REGIONAL AUTONOMY
• AUTONOMY IN THE FIELD OF FINANCIAL
• FISCAL REFORM ON LOCAL GOVERNMENT.
• READINESS OF LOCAL GOVERNMENT IN
ANTICIPATING FISCAL REFORMS
2
CHANGES FROM CENTRALIZED TO DECENTRALIZATION SYSTEM
CHANGES FROM CENTRALIZED SYSTEM TO
DECENTRALIZATION
Reforms since 1998 Government System
Experiencing The Drastic Changes
Centralization
Decentralization
Decentralized systems Applicable
Regional Autonomy System
3
Decentralization
Concentrating all authority over
all matters pertaining to the
level of the central government
4
Nowadays, the affairs central
government are:
•
•
•
•
•
•
Religion
Overseas
Justice
Defense
Security
Monetary within the meaning of
printing money, determines the
value of money, and so on.
5
Decentralization
Handover of authority.
In relation to the Indonesian
government system, decentralization
is often associated with the system of
governance
Paradigm shift in the Indonesian
government.
6
Decentralization
Government Sector
in
Delegation of authority
from
the
central
government to the unit of
government organizations
in
the
region
to
meyelenggarakan all local
interests of a group of
people who inhabit the
region.
Initiative, authority and
responsibility on matters
submitted become the
responsibility
of
the
central
area,
both
regarding the planning,
implementation, reporting
and accountability, as well
as on the financing terms.
7
The purposes of decentralization are :
• Preventing financial centralization;
• As the democratization efforts of
local governments to include the
people responsible for governance.
• Preparation of programs for socioeconomic improvement at the local
level so that it can be more realistic
8
Decentralization can Deconcentration
be done through a 4 administrative authority
(four) forms the main
activities, namely:
Delegation
authority
Devolution
governments
to
the
to
of
ruling
local
The transfer of the functions
of government to the private
sector
9
REGIONAL AUTONOMY
By Applicability Decentralized System
Begin Era of Regional Autonomy
Decentralized systems Applicable Pula Regional
Autonomy System
Rights, powers, and obligations of autonomous regions to set up
and manage their own affairs and interests of local communities in
accordance with the laws and regulations
10
There are two basic values that are developed
in the Act of 1945 regarding the
implementation of decentralization and
regional autonomy in Indonesia, namely:
Unitarian value, which is
manifested in the view that
Indonesia does not have
another unity government in
which it is the state
("Eenheidstaat"), which
means that sovereignty is
inherent in the people, the
nation and the Republic of
Indonesia will not be divided
between units of
government.
Territorial Decentralization
basic values, of the letter
and spirit of article 18 of
Law 1945 and an
explanation as mentioned
above it is clear that the
Government is obliged to
carry out political
decentralization and
deconcentration in the
constitutional field.
11
The emphasis is on the regional autonomy of
the district/city with some basic considerations:
• Political dimension, Level II Region has seen less
fanaticism regional separatist movements so that risks and
opportunities for the development of federalist aspirations
relatively minimal;
• Administrative dimension, governance and service to
society relative can more effectively;
• Level II area is the area "spearhead" the implementation of
development so that the Regional Level II who better know
the needs and potential of the people in the region
12
On this basis, the principles of
autonomy are:
Real, according to the situation and the objective
conditions in the area;
Responsible,
aligned/strived
to
development in the entire country.
accelerate
Dynamic, being the means and the drive for better
and advanced.
13
AUTONOMY IN THE FIELD OF FINANCIAL
Autonomous
Regions
Areas that are entitled and obliged to regulate
manage his own household
One is the financial management Local
Government.
Implementation of local government functions will be implemented
optimally if the host government affairs followed by search revenue
sources sufficient to regions
With reference to the law on fiscal balance between the central
government and local governments in the amount adjusted and
harmonized with the division of authority between the central
government and local governments.
14
The financial relationship between the state and local
finance can be described as follows:
• President as head of government holds power state management
that are part of government power;
• The President then hands over power to the regional head
(governor/regent/mayor) as the head of local government to
manage the finances of regional and local governments in the
ownership represent separate assets;
• The relationship between central and regional management
concerning the relationship of income (revenue) and utilization
(expenditure) either for routine expenses as well as regional
development in order to provide quality public services,
responsibel and accountable;
• The concept of the relationship between central and local
administration is the relationship and regional relations. The
relationship is arranged through the central government's
obligation
to
allocate
equalization
funds
to
local
governments. Thus, all the financial resources attached to any
matters submitted to a source area of local finance.
15
From the explanations above, it can be seen
that the relationship between the central
government and local governments in financial
management can be viewed from three aspects:
In a judicial review. State
Financial
Management
in
Indonesia based on Act No. 17 of
2003 and in this law has
expressly stated that one of the
country's financial scope is local
finance. As the implementation of
this then stipulated Government
Regulation No. 58 Year 2005 on
Regional
Financial
Management. Legally, it can be
said that the relationship between
the central and the local
government in terms of financial
management
is
the
implementation
of
financial
management are based on
Government Regulation No. 58 of
2005 as the implementation of
Act No. 17 of 2003.
In
Overview
System
of
Government. President is the
head of government as well as
the financial management of
state authority. With the issuance
of Act No. 32 of 2004, the
president delegates the authority
to the head of the region as the
head
of
the
regional
administration and one of the
authorities that are delegated
authority in the area of financial
management.
In
the
Forms
Overview
State. Indonesia is a unitary
state. Its firmness constitution is
not negotiable. In the conception
of the unitary state, there is no
separation between the central
government
and
local
governments.
Delegation
of
authority to local governments
does not mean the central
government does not supervise
the
implementation
of
the
regional administration. One of
the supervisions is in the area of
financial management. Regional
autonomy is implemented as long
as it’s remained within the
framework of a unitary state so
that the central and local
relations in this conception is a
supervisory relationship.
16
FISCAL REFORM ON LOCAL GOVERNMENT.
History of Taxes in Indonesia
• Taxes in Indonesia is preceded by Land and Building Tax (PBB). In the past, PBB was
better known as the land tax. The levy is applied to land or land owned by the people of
Indonesia. Withholding tax on this land began VOC impose land tax
called landrete. The people forced to pay a sum of money from the amount of land
prices or the results of its land
• Selanjutnya di zaman Gubernur Jenderal Daendels, pemerintahan colonial mengklaim
bahwa seluruh tanah Indonesia adalah milik Belanda. Saat itu ia menyebutnya Hindia
Belanda. Ia menarik pajak yang tinggi termasuk dalam bentuk kerjapaksa. Yang
diantaranya dipergunakan untuk membangun jalan raya Anyer-Panarukan.
• Furthermore, in the days of Governor General Daendels, colonial administration
claimed that all the land in Indonesia is owned by the Dutch. At that time it was called
as The Dutch East Indies. He draws high taxes included in the form kerjapaksa. Which
are used specifically for building highway Anyer-Panarukan.
• At the time of British settlement, landrete policy change. Governor General Raffles
charge a tariff of 2.5% for the indigenous groups and the tariff of 5% for land owned
by other nations.
• When the Dutch returned to power, came the idea to impose income taxes. In the
years 1920-1921 has no income tax on crops or crops resident. the term known
as Warde versponding the form of taxes to the tea gardens, coconut, tea, and
tobacco. The imposition of tariffs of 7.5% of the crop. In 1934 published the motor
vehicle tax, after the birth of other taxes until the time of independence until now
17
FISCAL REFORM IN CURRENT LOCAL GOVERNMENT
Fiscal decentralization through revenue sharing
between the center and regions in accordance with
the principle money follows function
Efforts to support the financing of various affairs and the authority that
has been delegated to the regions is one of the implementations of the
paradigm of central and local government relations.
Initial policy formulated in Law 22 and No. 25, 1999, among others, is
characterized by the allocation of the General Allocation Fund (DAU) as a
source of financing various government functions that have
didaerahkan, DBH (DBH) of extraction of natural resources in the area
concerned, and given the tax authority are limited to government area
Decentralization laws were conducted in 2004 focused the monitoring
mechanism by the central government, and improvements to the
accountability of local government spending
18
Law Number 33 Year
2004 concerning
Financial Balance of the
Central Government and
the Regions
Enlarge the basis for tax
revenue from natural
resources owned by the
region, as well as of
other national-level
taxes, and the expansion
of the total funds that
become a source of DAU
Changes in the fiscal
decentralization policy
itself is a reflection of
the growing fiscal needs
at the local level, the
practice of soft budget
constraint of the central
government were also
caused by the slow pace
of reform of local taxes
19
Tax as a revenue source is one of the
most important instruments in fiscal
decentralization, because it reflects
how much the revenue authority is
owned by a governmental level
Acceptance is also a reflection of how
large an area is trusted and has the
ability to manage their own sources of
revenue to finance its
The tax is also an instrument for
managing demand and supply of local
public goods, instruments for
measuring the transparency and
accountability of local government to
the public, and the instruments to
influence consumer behavior/local
public.
20
PRIMARY FUNCTION TAX
the
regulatory
function
Budgetary functions
is
a
function
of
tax
related to the tax
relating
to
oajak
role
in
function as a tool to
regulating
the
raise funds from the
economy,
resource
public which are then
allocation,
used to pay for
redistribution
of
administration and
income,
consumption
development activities.
and public investments
21
In today's era of regional autonomy, the area is
given greater authority to regulate and manage
their own household.
The aim, among others, is to get closer to
public services, make it easier to monitor and
control the use of funds from the budget.
To create a healthy competition between regions
and encourage innovation. In line with such
authority
22
Local governments are expected to be able to dig up financial resources,
especially to meet the financing needs of government and local
development through Local Revenue (PAD).
Increased responsibility of governance (the provision of public
goods and economic development) at the level of a very large area,
especially in the field of education which is an essential element in
regional development.
Region's ability to maintain and improve the organization can be said to
be very limited, given the role of Local Revenue (PAD) in particular areas
of tax issues is still low in the reception area budget city / county and
the readiness of the human resources (HR) and the ability of
management at the regional level is still very limited
23
READINESS OF LOCAL
GOVERNMENT FISCAL
REFORMS ANTICIPATE
STRENGTHENING
OF TAXATION
SYSTEM.
STRENGTHENING
OF LOCAL
GOVERNMENT
ACCOUNTING
SYSTEM ACCRUAL
24
STRENGTHENING OF TAXATION SYSTEM.
Since regional autonomy was rolled out in 2001, the
area has been given the freedom to pick and manage
their own sources of revenue from the region.
• Law No. 34 of 2000 on Local Taxes and Levies, the area was
given the authority to levy 11 (eleven) types of tax, which is 4
(four) types Provincial Tax and 7 (seven) types of tax Regency /
City in accordance with the maximum tax rate set out in the
legislation.
• In addition, the district / city is still given the authority to
establish other types of tax insofar as it meets the criteria set
out in the legislation and establishes types of levies other than
those specified in government regulations
25
Yet effective way to increase revenue in order to
fund the implementation of regional autonomy.
It is particularly indicated:
• The absence of significant changes to the
composition of local revenues.
• Taxes and levies tend counterproductive to the
regional economy.
• Regions in delivering the low compliance
regulation Regional Tax and Retribution to the
Central Government.
• The limited tax base in the district / city
setting powers of taxation and levies that
existed at that time was less support the
implementation of regional autonomy
26
Law No. 28 of 2009 on Local Taxes and Levies. In
the Act has regulated the new provisions relating to:
Broadening the tax base and levy which can be managed by the
region
The maximum and minimum limits of the provisions in the
imposition of local tax rates.
Tax Base smoking on cigarette tax.
Addition of levies other than those specified in the legislation.
Earmarking policies for certain types of local taxes.
Changes in the mechanism of supervision over local charges from
repressive system into a system of preventive and corrective.
27
STRENGTHENING OF LOCAL GOVERNMENT WITH
ACCRUAL ACCOUNTING SYSTEM.
Reform era
Transparency and
accountability in financial
management
Government Regulation
No. 71 Year 2010
concerning Governmental
Accounting Standards
(SAP).
Regulation of the Minister
of Home Affairs Number
64 Year 2013 on
"Implementation of SAP
Accrual Based on local
government
Application of the rule in the
international accounting that
has been referred to the
Internatonal Public Sector
Accounting Standards (IPSAS)
issued by the International
Federation of Accountants
(IFAC).
There is a change from
the cash basis to accrual
basis accounting into
administration
28
As the mandate of the regulation, in the scope of local
government has issued Minister Regulation No. 64 Year
2013 on "Implementation of SAP Accrual Based on
local government". Excess accrual accounting, among
others, present information that is more complete and
fulfilling managerial supervision functions.
• Factors of readiness of the local government, will be
very important in implementing accrual accounting
which should be implemented since 2015, to the head
of the region need to be made regulations regarding
accounting policies, accounting systems and a
standard chart of accounts (BAS).
• With the application of accrual-based SAP is expected
to be a lack of transparency, participation and
accountability of financial management in order to
realize good governance.
29
CLOSING.
Noting the problems mentioned above,it can be concluded
that:
• Local governments need to do a precaution against
changes in fiscal reform is the policy of the central
government.
• In anticipation of the fiscal reforms, it is necessary to
strengthen the local government system of local taxation.
• Precaution that needs to be done is to improve the
government’s accounting system including improving the
system of accrual-based asset management area.
• IPDN is an educational institution in charge of preparing
cadres of local government leaders to prepare for a better
future, for that we are ready to work together to meet the
needs of local governments for financial management
including anticipation of fiscal reform.
30