Tax amnesty will meet target, House member says

Jakarta, InfoPublik – In the first month of tax amnesty implementation, the tax revenue only reached Rp497 billion or about 0.3 percent of the total target of Rp165 trillion set by the government. However, the House of Representatives (DPR) is still optimistic that the target would be met.

“Indonesians tend to beat the clock especially large companies that require accurate bookkeeping and report. The real amount of the tax revenue will be found in mid-September 2016," said DPR Commission XI member Johnny Plate in Jakarta, Sunday (8/14).

In addition to the government’s massive dissemination, he said, the state instruments must optimize their performance to achieve the target.

Next thing to be considered is the implementation of location portfolio of the repatriated fund. Businessmen are currently awaiting information about what they can achieve regarding interesting investment as well as designated locations.

“They are getting ready at the moment, so the program is still on the track. Therefore, tax amnesty program must be completed, so that we have a new data base of taxation,” he explained.

“After that, we prepare the general provisions of our Taxation Law so that our taxation position is clear. Afterward, we need to create a more conducive investment climate to attract investment. Then after all sectors are ready, we will make tax haven.”

He added tax haven was not a negative way; it could increase investment through adequate incentives.

“Besides that, we cannot change the state of our apparatus instantly; it takes time. So, the government needs to prepare a special region like Batam where the rules are very special to encourage development,” he said. “Tax haven—in our taxation reform discourse—is aimed to attract the capital owners to invest in Indonesia. It takes a long time to prepare something rationally. And, it needs a new and comfortable taxation law to make the money permanently invested in Indonesia. In addition, the country needs to monitor the real sector performance to guarantee investment.” (Translator: Erik Limantara)