JAKARTA NOW READY TO ‘USE THE STICK’

Those who didn’t take part in pro­gramme face much heav­ier penal­ties of as much as 200pc, says of­fi­cial

New Straits Times - - Business -

JAKARTA credit-card data from banks and com­pare those with tax re­ports af­ter the amnesty pro­gramme uncovered more than US$353 bil­lion (RM1.5 tril­lion) in pre­vi­ously un­de­clared as­sets.

While the par­tic­i­pants in the amnesty would be “su­per­vised”, the rich or large tax­pay­ers who didn’t take part would pay a much heav­ier price, in­clud­ing penal­ties of as much as 200 per cent, said Hestu Yoga Sak­sama, di­rec­tor for pub­lic re­la­tions at the Direc­torate Gen­eral of Tax­a­tion on Wed­nes­day.

The amnesty pro­gramme, a key plank in President Joko Wi­dodo’s push to boost rev­enue needed to fund am­bi­tious spend­ing plans, ends to­day with the gov­ern­ment al­ready net­ting 125 tril­lion ru­piah (RM41.5 bil­lion).

More than 800,000 par­tic­i­pants have de­clared 4,704 tril­lion ru­piah of as­sets since the amnesty be­gan in July, with Sin­ga­pore top­ping the list of coun­tries where In­done­sians stashed money.

“The tax amnesty was a car­rot, so they’ve got to use the stick, they got to show that if you didn’t com­ply when we gave you a chance to do so, we’re go­ing to hit you hard,” said Wel­lian Wi­ranto, an econ­o­mist at Oversea-Chi­nese Bank­ing Corp in Sin­ga­pore. “It would show that they take tax com­pli­ance se­ri­ously.”

The gov­ern­ment had set a repa­tri­a­tion goal of 1,000 tril­lion ru­piah, but only 146 tril­lion ru­piah was brought back. Bloomberg

BLOOMBERG PIC

More than 800,000 par­tic­i­pants have de­clared 4,704 tril­lion ru­piah of as­sets since the gov­ern­ment’s tax amnesty be­gan in July, with Sin­ga­pore top­ping the list of coun­tries where In­done­sians stashed money.

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