No Need to Hesitate, President Joko Widodo Says
Date 15 Juli 2016
President Joko Widodo urges all tax payers including business people to make use of various benefits offered in tax amnesty program. He emphasized that this program would not be repeated. Therefore, all tax payers should use this moment.
This program is expected to give positive impacts to the economy including infrastructure development, financial system liquidity, and economic growth, the President said in tax amnesty dissemination, before 2,700 East Java business people, held at Grand City Convention Center, Surabaya, on Friday (15/7) evening.
The purpose of this program is to increase Indonesias prosperity in various sectors, such as state revenue increase in education and health sectors, rupiah exchange rate improvement, national financial liquidity improvement, as well as an increase in foreign exchange reserves, the President explained.
In this tax amnesty program, which legal basis has been drawn up, the President added, the Government will give opportunity to all tax payers to get tax removal, exemption of tax administrative sanctions, exemption from criminal sanctions in taxation sector, and termination of investigation process of tax crime.
Tax amnesty means removal of tax arrears. The second meaning is administrative sanctions exemption, the third is exemption from tax criminal sanctions, and the fourth is termination of investigation process, the President said.
To get benefits from this program, the tax payer should submit unreported assets and bring them to Indonesia as well as pay the redemption rates. The participants of tax amnesty program should not involve in tax criminal cases nor has been sentenced in tax crime.
The President guarantees the confidentiality of the data of tax amnesty participants. He firmly said that the participants of this program would not be the object of investigation and prosecution since the legal basis has clearly stated it.
The data would not be asked by or given to anyone. Should anyone spill the beans, he/she will get 5 years punishment, the President firmly said.
Regarding the instrument to accomodate the money from tax amnesty of repatriation, the President explained that for short term, there are mutual fund, Government Securities (SBN), State-Owned Enterprises Obligations, and financial investments at the bank as well as private companies obligations. Meanwhile, for middle and long terms, it will be used for infrastructure development.
At the moment, Indonesia intensively develops infrastructure, such as power plant, seaports, toll roads, airports, and industrial zones. The money will go to these sectors. This is direct investment, the President said.
The most important thing is, the President stated, he will eye this tax amnesty program.
So, no need to hesitate. I will form a task force comprising of the officers from Finance and Development Supervisory Agency (BPKP) as well as the intelligence to keep an eye on this program, to supervise tax officers, the President said. (DID/ES)(MMB/YM/Naster)