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Jakarta Post

Govt to issue supporting regulations for tax amnesty

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, June 30, 2016   /  11:57 am
Govt to issue supporting regulations for tax amnesty Finance Minister Bambang Brodjonegoro (second left) gives a press briefing with Deputy Finance Minister Mardiasmo (left), Bank Indonesia deputy governor Perry Warjiyo (second right) and the Financial Services Authority's (OJK) commissioner for capital market supervision at the ministry's office in Central Jakarta on Wednesday. (The Jakarta Post/Sepsha Dewi R.)

The government will soon issue three supporting regulations as guidance to implement the tax amnesty bill, which was passed into law at a House of Representatives plenary meeting on Tuesday.

Finance Minister Bambang Brodjonegoro said the tax amnesty would be beneficial for the economy as asset repatriation would boost domestic liquidity, support the rupiah and investment and help to lower interest rates.

“The drafts of those regulations are expected to be finished this week,” he said in Jakarta on Wednesday, adding that the tax amnesty was set to be enacted on July 1 and that every Indonesian citizen would have the same right to the facility.

Bambang expressed optimism that tax evaders would take advantage of the tax amnesty program, especially in the first batch from July to September, to enjoy the lightest penalties.

According to the Tax Amnesty Law, the redemption rate for declared assets repatriated for investment is set at 2 percent of the net asset value. Meanwhile, declared assets that are repatriated but are not for investment purposes will be subject to a 4 percent penalty.

Bank Indonesia deputy governor Perry Warjiyo said bonds, stocks and corporate bonds were financial instruments that could absorb the repatriated funds. The government expects to pocket additional tax revenue of Rp 165 trillion (US$12.31 billion) from the tax amnesty. (sha/ags)

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