Controversial Indonesian tax amnesty proves divisive

AFP, JAKARTA: Indonesia has hailed a tax amnesty as a major success after it raised more than $7 billion in its first few months, but criticism is mounting that the controversial scheme lets the super-rich off the hook.
Authorities began the flagship policy with much fanfare in July, asking Indonesians to declare their hidden wealth in exchange for paying penalties far below regular tax rates.
President Joko Widodo is desperate for extra money to boost Southeast Asia’s top economy after almost two years in power, during which his efforts to turn around slowing growth have met with little success.
The government hopes the initiative will lure back tens of billions of dollars stashed abroad, particularly in neighbouring city-state Singapore, and get more people to pay tax in a country where only about 10 per cent are registered taxpayers.

Controversial Indonesian tax amnesty proves divisive

AFP, JAKARTA: Indonesia has hailed a tax amnesty as a major success after it raised more than $7 billion in its first few months, but criticism is mounting that the controversial scheme lets the super-rich off the hook. Authorities began the flagship policy with much fanfare in July, asking Indonesians to declare their hidden wealth in exchange for paying penalties far below regular tax rates. President Joko Widodo is desperate for extra money to boost Southeast Asias top economy after almost two years in power, during which his efforts to turn around slowing growth have met with little success. The government hopes the initiative will lure back tens of billions of dollars stashed abroad, particularly in neighbouring city-state Singapore, and get more people to pay tax in a country where only about 10 per cent are registered taxpayers.