The government is going all-out to promote the tax amnesty program, with President "Jokowi" Widodo leading the second-day campaign in Semarang on Tuesday to convince prominent businesspeople to take part in the program.
Jokowi will meet with entrepreneurs in Semarang, Central Java on Tuesday to discuss the government’s flagship program to repatriate Indonesian assets parked overseas and increase tax revenues, following a similar campaign in Bandung, West Java, on Monday.
Businesspeople that repatriate their assets will enjoy a redemption rate ranging from 2 to 5 percent of the assets, while those who declare their assets will get a 4 to 10 percent rate.
As of Tuesday morning, Rp 10.9 trillion (US$829.84 million) in assets has been declared from 1,580 taxpayers during its three weeks of implementation, with redemption of Rp231.44 billion induced to tax revenue, or only 0.1 percent of total tax revenues targeted on this program at Rp 165 trillion, according to the latest data from the Taxation Directorate General.
Jokowi believes more people will take part in this program as the Finance Ministry has completed a Finance Ministerial Regulation to support the program.
"Two supporting regulations have already been delivered by Finance Minister. So indeed we have issued supporting regulations, but they have not accommodated taxpayers who want to repatriate their funds," said.
Jokowi estimated that capital flows will increase at the end of August or at the beginning of September ahead of the end of the period with lowest redemption rate by the end of September. (bbn)