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5 January 2022, Law on Fiscal Relationship between Central Government & District / Local Government
Law on Fiscal Relationship between Central Government & District / Local Government has passed the legislature and been enacted on 5 January 2022; the Law Number 1 Year 2022 on Fiscal Relationship between Central Government & District / Local Government (Hubungan Keuangan antara Pemerintah Pusat & Pemerintah Daerah) ("Law").
Among other provisions of the Law, there are considered as the improvement of Law Number 28 Year 2009 on Local Tax & Local Levies (Pajak Daerah & Retribusi Daerah) ("Law 28"), whose provisions has been partially declared as unconstitutional by the Judicial Review Verdict Number 80 Year 2017 by Constitutional Court.
Some (new term of) local taxes, the tax to be levied by the district / local government, are improved / added in the new Law (in comparison with Law 28), e.g. the PBJT (Pajak Barang & Jasa Tertentu, literally translated: Tax on Certain Goods & Services).
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