Tax Amnesty is Momentum to Reform Tax System, President Jokowi Says

President Jokowi talks with tax officers during sudden inspection to the Tax Office, Jakarta, on Wednesday (28/9)

A high public interest to take part in the Tax Amnesty program is a momentum to reform Indonesia’s taxation system, President Joko ‘Jokowi’ Widodo said.

“With enthusiasm as high as this, in which people queued from early morning at 3 a.m or 4 a.m., is a good thing. This is a good momentum to widen our tax bases,” the President told the reporters in during an impromptu inspection to a Tax Amnesty service outlet on Wednesday (28/9) at the Jakarta Tax Administration Office (KPP) in Jalan Ridwan Said, Central Jakarta.

According to the President, the people start to have awareness on taxes; thus, the Government is focuses on building public trust.

“This is the momentum,” President Jokowi said.

President Jokowi asserted that tax reform, be it on service or administration systems must be started. He added that this is the moment to reform the taxation system and it is expected to be followed by Taxation General Provisions and Procedures law, Income Tax law, and Value Added Tax law.

“Everything must be done in details so it will improve our taxation system in the future,” the President stated.

President Jokowi admitted that he received reports saying that the declared assets of taxpayers from the Tax Amnesty program has reached Rp 2,700 trillion.  According to the President, the amount is the largest among other tax amnesty programs in other countries.

“Insya Allah, the amount is estimated to exceed Rp 3,000 trillion today. We have to be aware of this momentum. We have trust from the people,” the President said.

President Jokowi went on to say that there are many requests to extend the period of the Tax Amnesty program. Therefore, he added Minister of Finance Sri Mulyani Indrawati has given  extension for administrative ease until December 2016.

“We only passed the first trimester, there are second, and third trimester. Do not judge only because the first deadline on 30 September is done. There are the second, and third period that we need to reckon,” the President said.

On that occasion, President Jokowi also said that tons of money from people with assets abroad starts entering the country. There are back to back, and crossing of stock on the ground.

“Money that we used to think is mostly saved abroad starts to enter Indonesia. The Government hopes that the money keeps flowing in and it will bring capital, and cash inflows, as well as improve Indonesia’s economy,” the President explained.

President Jokowi, on another inspection to Grogol Petamburan Tax Administration Office, located in Jalan S Parman, West Jakarta, took his time to talk with several taxpayers who join tax amnesty program.

“Why do you love doing things near the deadline?” President Jokowi asked some taxpayers.

Several taxpayers who will use tax amnesty program are seen in the queuing line of the Tax Administration Office.

“Please pay first. The administrative requirements can be submitted later,” Finance Minister Sri Mulyani who accompanied the President in the inspection said.

Director General for Taxation Ken Dwijugiasteadi also accompanied the President in the inspection to Grogol Petamburan Tax Administration Office, and Tax Amnesty Service Office, which is shared office between KPP Madya Jakarta Pusat, KPP Madya Jakarta Utara, KPP Madya Jakarta Selatan, KPP Madya Jakarta Barat, and KPP Madya Jakarta Timur. (UN/ES)(RAS/EP/YM/Naster)