Jakarta (Antara Bali) - Finance Minister Sri Mulyani Indrawati said Indonesia recorded the highest rate of redemption revenues from tax amnesty program among countries in the world ever adopting the program.
Until Sept 29 Indonesia recorded Rp89 trillion in redemption fund from tax amnesty or 0.65 percent of its GDP , followed by Chile with redemption of 0.62 percent of its GDP, the minister told lawmakers of the Commission XI of the House of Representatives in a working meeting here on Thursday.
Other countries which have adopted tax amnesty included India with redemption of 0.58 percent of GDP, Italy with redemption of 0.2 percent of GDP, South Africa 0.17 percent, Belgium 0.15 percent and Spain 0.12 percent of its GDP.
"This is a fast development and it was only in the first period of the program. There are still more to come expected in the second period until December," the minister said.
The program is divided into three periods - from July to September with redemption tariff of 2 percent, from October to December with tariff of 3 percent and the last period from January to March , 2017 with tariff of 5 percent.
Many tax payers rushed to reports before the end of the first period utilizing the cheaper redemption tariff.
Indonesia also led in asset declaration reaching 21.1 percent of GDP, followed by Chile 8.33 percent, Italy 5.2 percent, Spain 3.88 percent, South Africa 3.62 percent and India 2.1 percent of GDP, she said.
She said the large assets declared by the tax payers would serve to strengthen data base needed in the future that reform in taxation system could run better.
"This figure (fund declaration) is significant and hopefully in the next six months there would be more information. The information would improve the tradition of obedience and become part of reform to improve the country's low tax ratio," she said.
The minister said most of the assets reported by the big tax payers are in the forms of investment and securities, cash and cash equivalent, land, buildings and other fixed assets, claims, stocks and precious metals.
The tax amnesty program succeeded in inviting 68,422 tax payers, who so far have not submitted their their annual income tax report (SPT) , 210,170 tax payers , who never submitted correct SPT , 7,899 tax payers registered before the launch of the tax amnesty program and 11,920 new tax payers.
By Sept 29 evening, redemption fund rose to Rp91.9 trillion from repatriated funds of Rp124 trillion , asset declaration abroad of Rp848 trillion and asset declaration in the country of Rp2,061 trillion with total asset reporting based on SPH of Rp3,032 trillion. (WDY)
