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Govt optimistic Singapore efforts to stymie tax amnesty will fail
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Finance Minister Bambang Brodjonegoro (second right) gives a press briefing with the ministry's general-secretary, Hadiyanto (left), deputy finance minister Mardiasmo (second left) and Bank Indonesia deputy governor Perry Warjiyo at the ministry in Central Jakarta recently. (JP/Prima Wirayani)
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inance Minister Bambang Brodjonegoro has claimed that Singapore's move to cut tax rates and offer facilities to keep Indonesian assets from leaving the city state is a counter to the recently introduced tax amnesty.
However, Bambang believes that Indonesian taxpayers who have parked their assets in the country, famed as a preferred destination for tax evaders, will repatriate their assets to Indonesia.
"It's only [Singapore’s] move to challenge us. I believe our taxpayers are nationalists who love Indonesia more than other countries," he said on Monday.
With the program, which provides a low redemption rate and amnesty for repatriated assets, Bambang predicted that 100 percent of Indonesian assets parked in Singapore would be brought back to Indonesia.
"100 percent, if possible," he noted.
A number of Singaporean banks have recently introduced offers apparently aimed at discouraging Indonesian customers from repatriating their assets by offering, among others, zero percent interest on loans to Indonesian businesspeople and waivers on declaration fees. (dmr)
