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'No more amnesty' vows Sri Mulyani as 2nd round reveals $40b in hidden assets
The second tax amnesty has dug up almost US$40 billion in hidden assets declared by Indonesian taxpayers, yielding over Rp 61 trillion in additional tax revenue.
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Finance Minister Sri Mulyani Indrawati (left) and Taxation Director General Suryo Utomo confer on July 1, 2022 during a press briefing on the government’s voluntary disclosure program, more commonly known as the second tax amnesty. (DJP/Public Relation)
M
ore than Rp 594 trillion (almost US$40 billion) in hidden assets has surfaced during the second tax amnesty, or so-called voluntary disclosure program, and will now be subject to Indonesia taxes.
The six-month program that ended on Thursday has yielded more than Rp 61 trillion extra revenue from the newly declared assets.
Taxpayers participating in the program have been given until Sept. 30, 2023 to finish repatriating their assets. They must also invest them in government bonds or selected domestic projects, such as renewables and commodity processing industries, for a minimum of five years.
Finance Minister Sri Mulyani Indrawati emphasized that the government would not be offering similar amnesty programs on a regular basis, confirming critics’ fears. From this point forth, the government would instead focus on improving tax enforcement, supervision and regulations.
“There will be no more [tax amnesty],” she told reporters on Friday.
The tax amnesty program was mandated by the 2021 Harmonized Tax Law, which aimed to boost state revenue and improve taxation.
The Finance Ministry has noted that Indonesia has one of the lowest tax-to-GDP ratios among ASEAN states.
