THE END OF TAX AMNESTY PROGRAM
- In Editorial
- Post 03 April 2017
- By Andy/Setiorini
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Tax amnesty program initiated by President Joko Widodo since July 2016 ended on Friday (31/03/2017) at 24.00 Western Indonesia Time. Indonesian Minister of Finance, Sri Mulyani Indrawati expressed her gratitude, encouragement and hope marking the end of the government program.
Director-General of Taxes at the Ministry of Finance, Ken Dwi Djugiasteadi in a press conference on Saturday morning (01/04/2017) said that for nine months after the program was applied since July 1, 2016, the state revenue from the tax amnesty program reached 135 trillion rupiah. The participants of the tax amnesty program until Friday (03/31/2017) at 11:00 p.m. reached 956.000 taxpayers.
Although revenues from tax amnesty program are increasing, Finance Minister Sri Mulyani is not satisfied with the performance achievement of the tax amnesty. This was proven by the realization that the repatriation of funds until the closing of tax amnesty program only reached 121 trillion rupiah. Actually, the amount is quite impressive, especially considering pessimismm among some of circles when the program was first launched. The repatriation commitment in the Statement Assets (SPH) reached 147 trillion rupiah. It means there are still funds which have not entered into Indonesia.
Finance Minister Sri Mulyani Indrawati said some causes have made the taxpayers unable to their funds into the country. One of them was due to regulatory constraints in the country of origin. Most taxpayers have already intended to follow the repatriation. But due to very strict regulations, they could not do it. The taxpayers who want to repatriate must take steps so that their money is said to be legitimate and do not violate the law, such as undergoing the anti-money laundering test.
In addition to regulatory constraints, Minister Sri Mulyani who was former World Bank Managing Director added that another cause making the taxpayers difficult to do repatriation is because their property abroad is not a movable property.
Although the state revenue from the tax amnesty program has not reached the target, the efforts of government and tax officials in attracting taxpayers to pay taxes should be appreciated. Besides, the award must also be given to the taxpayers who have participated in the program.
Participating in the Tax Amnesty program has helped the government in accelerating the economic growth such as to boost domestic liquidity, to improve the rupiah, to lower interest rates, and to increase the investment. This is part of the tax reform towards a more equitable tax system and the expansion of more valid, comprehensive, and integrated data base of taxation, and increase tax revenues which will be used to finance the development across Indonesia.