Jakarta. Indonesia’s tax amnesty program has made progress in its second week, boosting confidence among the country’s top officials that it will attract trillions of rupiah in repatriated assets.
The Directorate General of Taxes has received 344 asset declarations by the end of July. The program so far seen the declaration of Rp 3.8 trillion ($288 million) in assets, which resulted in Rp 579.1 billion being repatriated, generating Rp 84.5 billion in tax revenue.
Indonesia Stock Exchange (IDX) president director Tito Sulistio told reporters during the 12th World Islamic Economic Forum on Tuesday (02/08) that the tax amnesty program will help strengthen the country’s capital market as people will opt to secure their assets in stocks for three years — as mandated by law — rather than in time deposits, which offer lower returns. This will also increase the number of companies willing to go public.
President Joko “Jokowi” Widodo estimated that the number of Indonesian taxpayers will rise as soon as in the third or fourth week of August.
Most business owners are still weighing up their options and some of them are looking for tax consultants before they join the tax amnesty program, Jokowi said on Monday.
The government expects the tax amnesty program to attract up to Rp 4,000 trillion in declared assets from Indonesians abroad, who may repatriate at least Rp 1,000 trillion, generating Rp 165 trillion in additional tax revenue.
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