Reassessing the Urgency of Tax Amnesty in Indonesia: A Social Justice Perspective

Abstract

The post-reform tax amnesty policy in Indonesia aims to enhance tax compliance and increase state revenue by granting relief from outstanding tax liabilities and penalties, conditional upon asset disclosure and payment of a redemption fee. This article examines the urgency of such a policy from the perspective of social justice, grounded in constitutional principles, tax law doctrines, and distributive justice theory. Employing a normative legal approach, the study analyzes the juridical foundation of Indonesia’s tax amnesty, with particular attention to the 2016 Tax Amnesty Program, alongside related initiatives such as the 2008 Sunset Policy and the 2022 Voluntary Disclosure Program. The findings indicate that while tax amnesty can effectively broaden the tax base and generate substantial short-term revenue, it also raises concerns about fairness. From the standpoint of Pancasila and the 1945 Constitution, questions arise over whether forgiving tax evaders aligns with the principle of equitable tax burden. Critics argue that the policy offers preferential treatment to non-compliant taxpayers, potentially undermining the moral integrity of law-abiding citizens. Although the Constitutional Court upheld the law’s constitutionality, challenges such as moral hazard and social inequality remain. The article recommends that future tax policy prioritize legal enforcement and long-term distributive justice to ensure equitable and sustainable compliance.