President Joko “Jokowi” Widodo officially launched the long-awaited tax amnesty program on Friday (01/07), marking the start of a string of promotional efforts for the nine month program that is hoped to repatriate trillions of rupiah in assets stashed abroad.
The tax amnesty program itself is yet to begin operations and details remain scarce, but that has not stopped eager Jokowi to gather 500 tycoons and businessmen in tax office headquarter in Jakarta to them on board with the program.
“[I] welcome everyone [to join the tax amnesty program], but those who refuse must be aware,” Jokowi said.
According to the president, he holds the names of Indonesians who have stashed their assets abroad. He, along with the Finance Minister Bambang Brodjonegoro and Director General of Taxes Ken Dwijugiasteadi, also claim to know the location of the assets.
“We need to promote this program immediately as we don’t have the luxury of time,” Finance Minister Bambang Brodjonegoro said in the ceremony.
Despite the so called official launch, the government is yet to release the supporting regulations or appoint lenders that will act as custody holders for repatriated assets. Still, his should come unsurprising by now, with the President often jumps the guns in high profile projects like Batang power plant or Jakarta Bandung fast train project.
Minister Bambang promised that all supporting regulations will be effective after the Idul Fitri celebration.
All government offices and most business centers will close for the entire next week, which is declared by the government as joint leave to celebrate the Islamic holiday.
The tax office will set up information centers at Indonesian embassies in Singapore, Hong Kong and London where most Indonesian keep their offshore assets, according to Hestu Yoga Saksama, the director of counseling, service and public relations of directorate general of tax at the Fianance Ministry.
Hestu told Jakarta Globe that the tax office and the Indonesian embassy will be working closely with Indonesian diaspora networks and the Indonesian banks’ branches overseas to promote the program.
The Finance Ministry expects the program to attract up to Rp 4,000 trillion ($304 billion) in declared assets stashed abroad and at least Rp 1,000 trillions of it will return to the country. The government also estimates it will gather additional tax revenue of Rp 165 trillion through the program.
Kategori:Tax Amnesty in English