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Government stays firm on tax examination plan despite outcry
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Finance Minister Sri Mulyani Indrawati (left), reads out letters written by the nation's hero of women's emancipation Kartini at Bank Indonesia Museum in Jakarta on April 11. It was an event held to celebrate Kartini Day on April 21. (Antara/Wahyu Putro)
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inance Minister Sri Mulyani Indrawati has defended the plan to examine the financial data of around 2.3 million bank accounts that have a minimum balance of Rp 200 million (US$15,025) despite a major outcry from micro, small and medium enterprises (MSME).
MSME association Akumindo previously voiced its concerns over such a plan, as it said the examination would only handicap the development of the businesses across the country.
According to the United Kingdom-based Oxford Economics, as of 2015, there were 55 million SMEs in Indonesia employing 108 million people, generating revenues of Rp 9.47 quadrillion and contributing to 60 percent of the country’s gross domestic product.
“The majority of people with a balance more than Rp 200 million are the ones that usually have shown tax compliance and paid their tax incomes,” Sri Mulyani said on Tuesday in Jakarta as reported by kompas.com.
Sri Mulyani said the examination was only aimed to oversee the whole economic structure in the country, not to collect more taxes from such bank accounts. “So, people should not worry about this,” she said.
According to Deposit Insurance Corporation (LPS) data as of February, 1.29 million customers have account balances between Rp 200 million and Rp 500 million. More than 519,000 customer accounts have between Rp 500 million and Rp 1 billion; while 257,000 accounts have a balance of between Rp 1 billion and Rp 2 billion.
Moreover, the LPS recorded that 238,514 individuals have a balance of more than Rp 2 billion. (vps/bbn)
