"Tax amnesty is a state policy that is not implemented every year," the vice president remarked while disseminating information regarding the policy at the Dhanapala Auditorium.
On the occasion, Kalla explained that the tax amnesty policy indicated that the state was in favor of the employers, and the funds collected through tax repatriation were needed to finance the budget to repair infrastructure and to boost development in the country.
Central Java Regional Office of Tax Directorate General Chief I Awan Nurmawan Nuh stated in Semarang on Wednesday that the government's tax amnesty policy was a good strategy to trigger accelerated development.
"Large amount of funds are needed to speed up development programs, particularly related to the infrastructure sector, but tax amnesty can be a solution," Nuh stated at a media gathering.
According to Nuh, on the fiscal side, a tax amnesty program is expected to finance the 2016 budget in the short term.
"Moreover, this program is the beginning of the tax reform process in Indonesia and can be part of the government's efforts to broaden the tax base and improve tax compliance to achieve optimum and sustainable tax revenues," he explained.
In addition, the monetary side of this program is expected to offer additional liquidity to the country's financial system and help strengthen the rupiah.
"Through this policy, the government also encourages the public to play a greater role in the nation's development," he affirmed.
With the implementation of the tax amnesty policy, it is expected that the funds of local investors, which are still circulating in foreign countries, can be channeled back to Indonesia. (WDY)