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Jokowi kicks off tax amnesty program
President Joko "Jokowi" Widodo has officially inaugurated the Tax Amnesty Law on Friday, marking the beginning of the most-anticipated program to repatriate funds from overseas into the real sector and financial market.
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Directorate General of Taxation officers serve tax payers in Jakarta. (Tempo/Nickmatulhuda)
Ayomi Amindoni
President Joko "Jokowi" Widodo has officially inaugurated the Tax Amnesty Law on Friday, marking the beginning of the most-anticipated program to repatriate funds from overseas into the real sector and financial market.
In his opening remarks, Jokowi called the amnesty program as a breakthrough to solving the country’s tax-revenue problems, which had continuously experienced shortfalls in recent years. He called for tax evaders to take part in the program to attain relief for past discretions.
"This opportunity will never come again as tax amnesty will not be repeated again. Anyone who wants to participate in the program, please do. Those who don’t feel like needing to, be careful," Jokowi said at the Directorate General of Taxation office on Friday in Jakarta.
The Finance Ministry is currently finalizing the ministerial regulations that will guide the tax amnesty’s implementation, including appointment of designated banks authorized to accept repatriated funds and the procedure as well as requirements for reinvestment.
The program will start accepting applications after the Idul Fitri holiday providing a low redemption rate and amnesty for tax evaders. A repatriated asset will enjoy a redemption rate ranging from 2 to 5 percent of the assets, while a declared asset is to have a 4 to 10 percent rate.
The government aims to see Rp 4 quadrillion (US$303 billion) of declared assets and Rp 1 quadrillion repatriated assets from overseas and to pocket Rp 165 trillion in tax revenue from penalties. (ags)
