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Saturday, May 21, 2016

Indonesian minister optimistic tax amnesty bill debate to go smoothly

Jakarta (ANTARA News) - Finance Minister Bambang Brodjonegoro said he is optimistic debate on the tax amnesty bill would go smoothly that tax amnesty policy would be implemented soon.

"What is important is that it would become law . Tomorrow or next month does not matter," Bambang said here on Friday.

The minister said he hoped the policy could be implemented even if only for six months as funds expected to be repatriated from abroad are needed to help finance investment to boost economic growth.

Many rich Indonesians are believed to have large funds stashed away in banks abroad to evade tax.

Bambang said if the bill proposed by the government was rejected by the Parliament, the government has to intensify tax collection and expand tax base.

"There has to be a solution. We would go after tax payers," he said.

With more political parties joining the ruling coalition, there would be less opposition expected to the tax amnesty bill.

Golkar, the seco nd largest faction in the parliament is expected to come in line with the government leaving only Gerindra and PKS in the opposing side.

House Speaker Ade Komarudin, who is from the Golkar faction, has said he hoped debate on the bill could be wrapped up before the revised draft of the state budget is passed into law.

"We have discussed with the Vice President, and we agreed on the schedule before the draft revision of the state budget is passed into law," he said earlier.

The Parliament put off debated on the bill when it was submitted earlier by the government saying there were things that need to be consulted with the government.

The lawmakers were split over whether to approve or to reject the bill. The controversy was also sharp in the public.

The Indonesian labor union threatened to stage a massive demonstration against the bill.

However, a tax observer accused many non governmental organizations of being penetrated by foreigners leading a c ampaign against tax amnesty bill.

"The NGOs should be aware of the importance of the bill for the economy and the welfare of the people," Darussalam from the Tax Center said.

He said tax amnesty policy is in line with the long term program of reform in tax policy and it is important to strengthen self financing in the countrys development program.

The bill was proposed following shortfall in tax collection in the first months of the year.

Data at the finance ministry showed that by April 16 , tax revenues totaled only Rp98 trillion or Rp7 trillion lower than in April last year.

Based on the trend, tax revenues are predicted to fall Rp300 trillion short of the yearly target.

Cumulatively, tax revenues in the first four months of the year totaled Rp283 trillion or 20.8 percent of the whole years target of Rp1,360 trillion.

In the same period last year tax revenues totaled Rp309 trillion or 23.8 percent of the target.(Uu.H-ASG/H-YH)


Source: Indonesian minister optimistic tax amnesty bill debate to go smoothly

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