Indonesia introduces tax amnesty to boost economy

AFP, JAKARTA: Indonesia’s parliament yesterday passed a tax amnesty bill in a bid to give Southeast Asia’s top economy a multi-billion-dollar
boost, defying criticism the move will let evaders off the hook.
The government believes the amnesty can bring in 165 trillion rupiah ($12.4 billion) of additional revenue this year by offering low rates to those who come forward to declare untaxed wealth.
Wealthy Indonesians have long chosen to stash billions of dollars abroad, particularly in neighbouring city-state Singapore, to keep it out of reach of the taxman.
All but one of the 10 political parties in the legislature backed the controversial measure, which has been repeatedly delayed due to months of wrangling between lawmakers.
“With this tax amnesty law, we hope to attract overseas capital belonging to Indonesians,” Finance Minister Bambang Brodjonegoro told  parliament after the bill passed.
Repatriated capital would “enter Indonesia’s financial system and boost economic growth”, he added.

Indonesia introduces tax amnesty to boost economy

AFP, JAKARTA: Indonesias parliament yesterday passed a tax amnesty bill in a bid to give Southeast Asias top economy a multi-billion-dollar boost, defying criticism the move will let evaders off the hook. The government believes the amnesty can bring in 165 trillion rupiah ($12.4 billion) of additional revenue this year by offering low rates to those who come forward to declare untaxed wealth. Wealthy Indonesians have long chosen to stash billions of dollars abroad, particularly in neighbouring city-state Singapore, to keep it out of reach of the taxman. All but one of the 10 political parties in the legislature backed the controversial measure, which has been repeatedly delayed due to months of wrangling between lawmakers. With this tax amnesty law, we hope to attract overseas capital belonging to Indonesians, Finance Minister Bambang Brodjonegoro told parliament after the bill passed. Repatriated capital would enter Indonesias financial system and boost economic growth, he added.