Fiscal Discretion and Citizens’ Burden: Tax Proportionality under Non-Emergency Economic Pressure
DOI:
https://doi.org/10.20527/.v11i2.325Keywords:
Accountability, Tax Proportionality, Citizens’ Burden, Fiscal Discretion, Tax PolicyAbstract
Economic pressure that falls short of an emergency places the government in a difficult fiscal position, because state revenue must be strengthened at the very moment when citizens face rising economic burdens. This article examines the legal limits of fiscal discretion when taxation is used as an instrument of fiscal recovery under non-emergency economic pressure. It also constructs a tax proportionality test as a structured and weighted accountability framework for determining whether tax policy remains legally justifiable or instead becomes a mechanism for shifting fiscal burdens excessively onto citizens. The study applies normative legal research using statutory, conceptual, and policy approaches. It finds that tax policy in a non-emergency situation cannot be justified by formal statutory authority under Article 23A of the 1945 Constitution of the Republic of Indonesia alone. Article 23A supplies a legality threshold; the substantive assessment of tax burdens must also be connected to the constitutional guarantees of legal certainty, protection of property rights, and social welfare. The proposed framework comprises seven elements: legality, legitimate public purpose, suitability of the instrument, necessity, balance of burden, transparency and auditability, and periodic evaluation. These elements do not operate as a strict cumulative invalidation test. Legality functions as the initial threshold. Legitimate purpose, suitability, necessity, and balance of burden operate as core justification elements, whereas transparency, auditability, and periodic evaluation operate as accountability indicators. Applying the framework to the 12 percent Value Added Tax (VAT) policy shows that legality and fiscal purpose are only the starting points of justification. The critical issues lie in proving necessity, protecting purchasing power, balancing burdens, disclosing the use of revenue, and evaluating the effects of the policy on vulnerable groups.
References
Books
Barak, Aharon. Proportionality: Constitutional Rights and Their Limitations. Cambridge Studies in Constitutional Law. Cambridge: Cambridge University Press, 2012. https://doi.org/10.1017/CBO9781139035293.
Kube, Hanno. Verhältnismäßigkeit: Zur Tragfähigkeit eines verfassungsrechtlichen Schlüsselkonzepts. Edited by Matthias Jestaedt and Oliver Lepsius. Tübingen: Mohr Siebeck, 2015. https://doi.org/10.1628/978-3-16-160634-2.
Marzuki, Peter Mahmud. Penelitian Hukum. Jakarta: Kencana, 2010.
Prichard, Wilson. Taxation, Responsiveness and Accountability in Sub-Saharan Africa: The Dynamics of Tax Bargaining. Cambridge: Cambridge University Press, 2015. https://doi.org/10.1017/CBO9781316275511.
Journal
Aprilia, Sinta Ananda Rizqi, Muhammad Yasir, and Hanin Alya Labibah. “Implementation of Value Added Tax Rate Increase Based on Harmonization of Tax Regulations.” PAMALI: Pattimura Magister Law Review 6, no. 1 (2026): 144–52. https://doi.org/10.47268/pamali.v6i1.3692.
Bird, Richard M., and Eric M. Zolt. “Redistribution via Taxation: The Limited Role of the Personal Income Tax in Developing Countries.” UCLA Law Review 52, no. 6 (2005): 1627–95. https://www.uclalawreview.org/redistribution-via-taxation-the-limited-role-of-the-personal-income-tax-in-developing-countries/.
Bisariyadi. “Penerapan Uji Proporsionalitas Dalam Kasus Pembubaran Partai Politik: Sebuah Perbandingan.” Jurnal Hukum & Pembangunan 48, no. 1 (2018): 84–109. https://doi.org/10.21143/jhp.vol.48.no.1.1597.
Evangelista, Beverly, and Prandy Arthayoga Louk Fanggi. “Aspek Hukum Pengenaan Pajak Karbon Di Indonesia Terhadap Kesesuaiannya Dengan Prinsip Keadilan Dan Keberlanjutan.” Journal Fundamental Justice 6, no. 2 (2025): 271–82. https://doi.org/10.30812/fundamental.v6i2.5619.
Giri, Ni Putu Niti Suari, I. Gede Yusa, Putu Gede Arya Sumerthayasa, Danial Kelly, and Jared Ivory. “The Dynamics of Government Fiscal Policy Post COVID-19 Pandemic in Indonesia (Legal Analysis of Government Regulation Instead of Law Number 1 Year 2020).” Law Reform: Jurnal Pembaharuan Hukum 20, no. 1 (2024): 135–52. https://doi.org/10.14710/lr.v20i1.63339.
Hamilton-Hart, Natasha, and Günther G. Schulze. “Taxing Times in Indonesia: The Challenge of Restoring Competitiveness and the Search for Fiscal Space.” Bulletin of Indonesian Economic Studies 52, no. 3 (2016): 265–95. https://doi.org/10.1080/00074918.2016.1249263.
Indrawati, Sri Mulyani, Elan Satriawan, and Abdurohman. “Indonesia’s Fiscal Policy in the Aftermath of the Pandemic.” Bulletin of Indonesian Economic Studies 60, no. 1 (2024): 1–33. https://doi.org/10.1080/00074918.2024.2335967.
Jackson, Vicki C. “Constitutional Law in an Age of Proportionality.” Yale Law Journal 124, no. 8 (2015): 3094–3196. https://www.yalelawjournal.org/article/constitutional-law-in-an-age-of-proportionality.
Khozen, Ismail, and Milla Sepliana Setyowati. “Managing Taxpayer Compliance: Reflections on the Drivers of Willingness to Pay Taxes in Times of Crisis.” Cogent Business and Management 10, no. 2 (2023): 1–15. https://doi.org/10.1080/23311975.2023.2218176.
Kirchler, Erich, Erik Hoelzl, and Ingrid Wahl. “Enforced versus Voluntary Tax Compliance: The ‘Slippery Slope’ Framework.” Journal of Economic Psychology 29, no. 2 (2008): 210–25. https://doi.org/10.1016/j.joep.2007.05.004.
Lailam, Tanto, and Putri Anggia. “The Indonesian Constitutional Court Approaches the Proportionality Principle to the Cases Involving Competing Rights.” Law Reform: Jurnal Pembaharuan Hukum 19, no. 1 (2023): 110–27. https://doi.org/10.14710/lr.v19i1.54087.
Mustamu, Julista. “Diskresi Dan Tanggungjawab Administrasi Pemerintahan.” Jurnal Sasi 17, no. 2 (2011): 1–9. https://doi.org/10.47268/sasi.v17i2.349.
Rugian, Irene Angelita. “Prinsip Proporsionalitas Dalam Putusan Mahkamah Konstitusi (Studi Perbandingan Di Indonesia Dan Jerman).” Jurnal Konstitusi 18, no. 2 (2021): 461–79. https://doi.org/10.31078/jk1829.
Timothy, Joshua, and Yulianti Abbas. “Tax Morale, Perception of Justice, Trust in Public Authorities, Tax Knowledge, and Tax Compliance: A Study of Indonesian SMEs.” eJournal of Tax Research 19, no. 1 (2021): 168–84. https://www.unsw.edu.au/business/sites/default/files/documents/168-Tax-morale-perception-of-justice-trust-in-public-authorities.pdf.
Internet
Asian Development Bank. “Indonesia: Economy.” Manila: Asian Development Bank, 2026. https://www.adb.org/where-we-work/indonesia/economy.
Badan Pemeriksa Keuangan Republik Indonesia. “BPK Sampaikan LHP Atas LKPP Tahun 2024 Dan IHPS II Tahun 2024 Kepada DPD RI.” Badan Pemeriksa Keuangan, 2025. https://www.bpk.go.id/news/bpk-sampaikan-lhp-atas-lkpp-tahun-2024-dan-ihps-ii-tahun-2024-kepada-dpd-ri.
Bank Indonesia. “BI-Rate Naik 25 Bps Menjadi 5,50%: Kebijakan Lanjutan Memperkuat Stabilitas Nilai Tukar Rupiah.” Jakarta: Bank Indonesia, 2026. https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_2811926.aspx.
Bank Indonesia. “BI-Rate Naik 25 Bps Menjadi 5,75%: Memperkuat Stabilitas, Mendorong Pertumbuhan Ekonomi.” Jakarta: Bank Indonesia, 2026. https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_2812626.aspx.
Kementerian Keuangan Republik Indonesia. “APBN KiTa: Kinerja dan Fakta, Edisi Juni 2026.” Jakarta: Kementerian Keuangan Republik Indonesia, 2026. https://www.kemenkeu.go.id/apbnkita.
Kementerian Keuangan Republik Indonesia. “Kerangka Ekonomi Makro dan Pokok-Pokok Kebijakan Fiskal Tahun 2026.” Jakarta: Kementerian Keuangan Republik Indonesia, 2025. https://fiskal.kemenkeu.go.id/publikasi/kem-ppkf.
Reports
European Court of Human Rights. “Taxation and the European Convention on Human Rights.” Press Unit Factsheet. Strasbourg: European Court of Human Rights, 2023. https://www.echr.coe.int/documents/d/echr/fs_taxation_eng.
International Monetary Fund. “Indonesia: 2025 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Indonesia.” IMF Country Report No. 2026/010. Washington, DC: International Monetary Fund, 2026. https://www.imf.org/en/publications/cr/issues/2026/01/21/indonesia-2025-article-iv-consultation-press-release-staff-report-and-statement-by-the-573330.
Nasrudin, Rus’an, Djoni Hartono, Faizal Rahmanto Moeis, Andhika Putra Pratama, Raka Rizky Fadilla, and Rustam Effendi. “The Potential Distributional and Economic Wide Impact of the New Indonesia’s VAT Law Implementation.” LPEM-FEB UI Working Paper No. 202273. Jakarta: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia, 2022. https://ideas.repec.org/p/lpe/wpaper/202273.html.
Organisation for Economic Co-operation and Development. “Revenue Statistics in Asia and the Pacific 2025: Indonesia.” Country Note. Paris: OECD Publishing, 2025. https://doi.org/10.1787/6c04402f-en.
Tiwari, Sailesh, Hidayat Amir, Ali Setiawan, Imam Moechtar, Anissa Rahmawati, Francis Addeah Darko, Ralph van Doorn, Juul Pinxten, and Adelia Surya Pratiwi. “Revisiting the Impact of Government Spending and Taxes on Poverty and Inequality in Indonesia.” Jakarta: World Bank, 2020.
World Bank. “Indonesia Economic Prospects, December 2025: Digital Foundations for Growth.” Washington, DC: World Bank, 2025. https://openknowledge.worldbank.org/entities/publication/2181f2fe-62c4-4a7c-b38d-d940dd673530.
Law and Regulation
Indonesia. The 1945 Constitution of the Republic of Indonesia [Undang-Undang Dasar Negara Republik Indonesia Tahun 1945].
Indonesia. Law Number 17 of 2003 concerning State Finance [Undang-Undang Nomor 17 Tahun 2003 tentang Keuangan Negara].
Indonesia. Law Number 1 of 2004 concerning the State Treasury [Undang-Undang Nomor 1 Tahun 2004 tentang Perbendaharaan Negara].
Indonesia. Law Number 15 of 2004 concerning the Audit of the Management and Accountability of State Finances [Undang-Undang Nomor 15 Tahun 2004 tentang Pemeriksaan Pengelolaan dan Tanggung Jawab Keuangan Negara].
Indonesia. Law Number 15 of 2006 concerning the Audit Board [Undang-Undang Nomor 15 Tahun 2006 tentang Badan Pemeriksa Keuangan].
Indonesia. Law Number 12 of 2011 concerning the Formation of Legislation [Undang-Undang Nomor 12 Tahun 2011 tentang Pembentukan Peraturan Perundang-undangan].
Indonesia. Law Number 30 of 2014 concerning Government Administration [Undang-Undang Nomor 30 Tahun 2014 tentang Administrasi Pemerintahan].
Indonesia. Law Number 15 of 2019 concerning the Amendment to Law Number 12 of 2011 concerning the Formation of Legislation [Undang-Undang Nomor 15 Tahun 2019 tentang Perubahan atas Undang-Undang Nomor 12 Tahun 2011 tentang Pembentukan Peraturan Perundang-undangan].
Indonesia. Law Number 7 of 2021 concerning the Harmonization of Tax Regulations [Undang-Undang Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan].
Indonesia. Law Number 17 of 2025 concerning the State Budget for Fiscal Year 2026 [Undang-Undang Nomor 17 Tahun 2025 tentang Anggaran Pendapatan dan Belanja Negara Tahun Anggaran 2026].
Indonesia. Minister of Finance Regulation Number 131 of 2024 concerning the Value Added Tax Treatment of Imports of Taxable Goods, Deliveries of Taxable Goods, Deliveries of Taxable Services, the Use of Intangible Taxable Goods from Outside the Customs Area within the Customs Area, and the Use of Taxable Services from Outside the Customs Area within the Customs Area [Peraturan Menteri Keuangan Nomor 131 Tahun 2024].
Indonesia. Minister of Finance Regulation Number 11 of 2025 concerning Provisions on Other Values as the Tax Base and Specified Amounts of Value Added Tax [Peraturan Menteri Keuangan Nomor 11 Tahun 2025].
Indonesia. Constitutional Court Decision Number 138/PUU-VII/2009 [Putusan Mahkamah Konstitusi Nomor 138/PUU-VII/2009].
Indonesia. Constitutional Court Decision Number 4/PUU-XIII/2015 [Putusan Mahkamah Konstitusi Nomor 4/PUU-XIII/2015].
Indonesia. Constitutional Court Decision Number 188/PUU-XXII/2024 [Putusan Mahkamah Konstitusi Nomor 188/PUU-XXII/2024].
Germany. Federal Constitutional Court [Bundesverfassungsgericht]. Order of the Second Senate of 18 January 2006, 2 BvR 2194/99, BVerfGE 115, 97.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Lambung Mangkurat Law Journal
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Section Policies
