Intensification of Tax Amnesty Called for to Meet Tax Target

Kupang, E Nusa Tenggara  (Antara NTT) - Economic observer from East Nusa Tenggara Timur Dr Thomas Ola Langodai said socialization of tax amnesty program should be intensified to meet the tax revenue target of Rp1,307.6 trillion in 2017.

The economist from the Catholic University of Widya Mandira in Kupang said the tax revenue target for 2017 is set lower than in 2016, but hard work is still needed to ensure the target would be achieved.

The tax amnesty program has succeeded in improving tax data base with largest taxable targets in 2017.

Until Sept 30 of the tax amnesty program, at least Rp3,500 trillion worth of assets not reported earlier had been declared . Repatriation of assets from abroad totaled Rp137 trillion and the amount is expected to increase.

Dr Thomas said a number of studies said that realization of tax revenues are estimated to reach Rp1,226.09 - Rp1,241.44 trillion in 2017 or only 94-95 percent of the target.

The prediction was based on the prevailing condition taking into account global economic slowdown , inflation and implementation of the tax amnesty program.

The government has said among countries ever adopting tax amnesty policy, Indonesia was the most successful.

The government said it earned more than Rp97 trillion in tax penalty, but more important is that the program had improved the government tax data base .

In addition, the program has given greater awareness of the tax payers to pay tax and many Indonesians having assets stashed abroad are expected to repatriate their assets for investment in the country.

The tax amnesty program would last until March 2017 and after the deadline, tax payers failing to reports assets would face criminal charges.

In 2018, Indonesia would adopt Automatic Exchange of Information (AEOI) under which all banks in the world would be accessible for investigation of taxable assets that there would be no safe place for tax evaders, Finance Minister Sri Mulyania has warned.