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Govt expects immediate approval of tax amnesty bill
Tax compliance: Tax officers (left) from the Finance Ministryâs Directorate General of Taxes helps taxpayers fill out and submit their tax forms (SPT)
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Tax compliance: Tax officers (left) from the Finance Ministryâs Directorate General of Taxes helps taxpayers fill out and submit their tax forms (SPT). The ministryâs Fiscal Policy Office is expecting an immediate approval of the tax amnesty bill so the government could immediately discuss the revision of the 2016 state budget, including its revised tax revenue targets. (Tempo/Dasril Roszandi) (left) from the Finance Ministryâs Directorate General of Taxes helps taxpayers fill out and submit their tax forms (SPT). The ministryâs Fiscal Policy Office is expecting an immediate approval of the tax amnesty bill so the government could immediately discuss the revision of the 2016 state budget, including its revised tax revenue targets. (Tempo/Dasril Roszandi)
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span class="inline inline-center">Tax compliance: Tax officers (left) from the Finance Ministry's Directorate General of Taxes helps taxpayers fill out and submit their tax forms (SPT). The ministry's Fiscal Policy Office is expecting an immediate approval of the tax amnesty bill so the government could immediately discuss the revision of the 2016 state budget, including its revised tax revenue targets. (Tempo/Dasril Roszandi)
The government is expecting the House of Representatives to approve the currently deliberated tax amnesty bill in the beginning of 2016, a fiscal policy official has said.
The Finance Ministry's Fiscal Police Office head Suahasil Nazara said the immediate approval of the tax amnesty bill was needed because with the bill the government could start discussions about the revision of the 2016 state budget, including its revised tax revenue targets.
'It is hoped that the tax amnesty bill can be discussed this month,' said Suahasil in Jakarta on Monday evening.
The fiscal policy official further explained that the government was set to revise a number of its economic assumptions in the 2016 state budget because of the current global economic situation and a downward trend in oil prices. The government had to wait for the tax amnesty bill to be approved to recalculate the state budget's macro economic assumptions.
'Once the tax amnesty bill is approved, the state budget's new estimations will be clear,' said Suahasil.
It was earlier reported that the government planned to revise the current 2016 tax collection target of Rp 1.32 quadrillion (US$95.17 billion). The new target is based on a 10 percent year-on-year (yoy) growth of last year's tax realization plus an estimated Rp 60 trillion that could be potentially generated through the government's tax amnesty policy.
In 2015, the government collected Rp 1.06 quadrillion in tax revenues, only 82 percent of the target set in the 2015 state budget.
"Usually, our tax revenues grow about 10 percent a year. Extra effort will add a 3 percent to 5 percent increase in the revenues. The tax amnesty will be a breakthrough. Once the bill is approved, we can calculate the estimation [of a new target]," Suahasil said.
The tax amnesty bill stipulates that taxpayers who report their overseas wealth will be taxed between 1.5 to 6 percent if they disclose it in 2016. The government aims to widen its tax base through this bill. (ebf)(+)
