- Title: Indonesians line up to beat deadline for tax amnesty's best terms
- Date: 30th September 2016
- Summary: JAKARTA, INDONESIA (SEPTEMBER 30, 2016) (REUTERS) EXTERIOR OF INDONESIAN TAX OFFICE BANNER OF TAX AMNESTY INTERIOR OF TAX OFFICE PEOPLE CHATTING SIGN READING (Bahasa Indonesia): "TAX AMNESTY SERVICE" TAXPAYER WAITING TO BE CALLED VARIOUS OF TAXPAYER READING DOCUMENTS PEOPLE WAITING FOR TAX REGISTRATION (SOUNDBITE) (Bahasa Indonesia) TAXPAYER, MOHAMMAD ABDU SAYING: "It's really up to the people on whether they want to join the scheme. However, I believe this is important and useful for national development because the funds, especially those coming from overseas, will make our financial conditions better." VARIOUS OF TAX OFFICER CALLING NAMES PEOPLE WAITING BANNER OF TAX AMNESTY (SOUNDBITE) (Bahasa Indonesia): HEAD OF TAX OFFICE, MEKAR SUTRIA UTAMA SAYING: "According to the data from last night currently we have reached 91.5 trillion rupiah. We hope by the end of today we can reach 100 trillion rupiah. We still have another six month (to reach the target). 165 trillion rupiah is 2016's target, we hope in the next three months, along with the 3 percent tariff, there will be more taxpayers joining the scheme. We believe we can hit the target." TAXPAYER WAITING WOMAN SPEAKING TO PHONE TAXPAYERS LEAVING TAX OFFICE
- Embargoed: 15th October 2016 09:18
- Keywords: Indonesia tax amnesty economy business
- Location: JAKARTA, INDONESIA
- City: JAKARTA, INDONESIA
- Country: Indonesia
- Topics: Budget/Taxation/Revenue
- Reuters ID: LVA00151RASZP
- Aspect Ratio: 16:9
- Story Text: Hundreds of Indonesians queued for hours on Friday (September 30) to get the most attractive terms on offer under a tax amnesty that's gained momentum after a slow start, becoming a scheme the finance minister has said is the the most successful the country has had so far.
The amnesty, which runs until March, aims to provide the government with billions of dollars in revenue to help cover a large fiscal deficit.
Facing government threats of an unprecedented crackdown on tax evaders, more than 300,000 Indonesians have joined the tax amnesty scheme and declared $250 billion of assets since its launch in July.
"It's really up to the people on whether they want to join the scheme. However, I believe this is important and useful for national development because the funds, especially those coming from overseas, will make our financial conditions better," said taxpayer Mohammad Abdu after waiting for two hours.
Friday marks the end of the programme's first phase, during which the lowest penalty of 2 percent on previously unreported assets applies. The penalty rates rise 1-2 percentage points on Saturday (October 1) and rise again from January 1 for the final phase.
"According to the data from last night currently we have reached 91.5 trillion rupiah. We hope by the end of today we can reach 100 trillion rupiah. We still have another six month (to reach the target). 165 trillion rupiah is 2016's target, we hope in the next three months, along with the 3 percent tariff, there will be more taxpayers joining the scheme. We believe we can hit the target," Mekar Sutria Utama, Head of Tax Office told Reuters.
Data on Friday showed 311,640 taxpayers had signed up, declaring 3,280 trillion rupiah ($252.40 billion) with 132 trillion rupiah pledged to be repatriated back to Indonesia, according to a government website giving daily updates.
Indonesians who declare assets overseas are not required to bring them home, but pay a lower penalty rate if they do. The bulk of Indonesia's offshore assets are believed to be in Singapore, with an estimated $200 billion there in private banking assets.
To date, the amnesty has generated 94.6 trillion rupiah in government revenue, more than half of Jakarta's 165 trillion rupiah target with six months still left to go. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None