JAKARTA: Missing the initial deadline of May 31, the government has revised the deliberation deadline for the tax amnesty bill, currently being discussed at the House of Representatives, to mid-June and to be implemented in July.
“Hopefully the discussion with the House will be completed by mid-June,” said Finance Minister Bambang Brodjonegoro as quoted by kompas.com on Sunday.
He expressed the ministry’s readiness to run the tax amnesty program through several preparations, such as a tax amnesty trial simulation system. “Preparation on the field has been ongoing, the system has been checked, tested,” he went on.
The ministry has calculated that the amount of wealth that would be declared and repatriated under the law would reach Rp 1 quadrillion, thus generating revenue of Rp 10 trillion to Rp 40 trillion from penalties.
As for the penalties, Bambang stated no change had been made as the ministry was waiting for the deliberations to be completed.
According to the current bill, the penalty rates are set between 1 and 4 percent for those declaring and bringing back their wealth to Indonesia. Meanwhile, those who opt to declare their wealth only will face penalty rates of 2 to 6 percent. The ministry estimated the amount of wealth declared would be larger than the amount repatriated, at Rp 3.5 to quadrillion.
As the penalty rates for non-repatriated wealth are set higher in the bill, revenue from the declared assets would be far higher, according to the ministry, at around Rp 70 trillion and Rp 240 trillion.
Earlier, the ministry’s secretary general, Hadiyanto, said bill deliberations would be completed by the second week of June and effectively run on July 1. The ministry has prepared supporting regulations for the bill.
