Jakarta – Although the tax amnesty program had only managed to repatriate 0.1 percent of the total target fund, Indonesian fiscal authority is adamant on not revising the Rp. 165 trillion target.
In the tax amnesty website accessed on Sunday, August 7, 2016 at 5:00 PM Western Indonesia Time, data on the website dashboard revealed that only Rp. 183.5 trillion of funds have been repatriated out of the Rp. 165 trillion target.
Finance Minister Sri Mulyani stated that she will continue to maintain the target in an attempt to keep the momentum going after seeing good public response towards the tax amnesty program. “The tax amnesty target hasn’t been revised until today,” Sri said on Sunday, August 7, 2016.
Sri claimed that she has confidence on the House of Representative and the government who have previously drafted the tax amnesty regulation.
Sri said that the momentum must be maintained because the tax amnesty program is related not only to present tax revenue. Sri explained that the policy is expected to provide a broader impact, specifically in expanding tax base used in calculating tax liabilities.
Sri asserted that expanding the tax base is essential because it serves as a crucial point to increase tax ratio, which has decreased to below 11 percent.
Therefore, Sri underlined that the government will continue to show strong commitment in achieving success in the program and has provided certainty for taxpayers by giving instructions to tax officials to postpone tax examination until March 31, 2017.
Nevertheless, Sri confirmed that she has taken steps to mitigate possible fiscal risks, including in the event where the policy misses its intended target. Sri said that she had requested permission from President Joko Widodo to make revisions on state revenue based on concrete data.
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