"There are still two more periods to go. We will step to the second and third phases with the same enthusiasm especially with SMEs as the rate (of redemption) on them would not change," Sri Mulyani said when accompanying President Joko Widodo (Jokowi) visiting the office of the Directorate of Taxation Service in Jakarta on Friday night.
The tax amnesty program is divided into three periods - First from July to September 30 , second from October 1 to December, 2016 and from January 1 to March 31 of 2017 with redemption tariff rising from 2 percent in the first period, to 3 percent in the second period and 5 percent in the last period.
However, based on the Law on Tax Amnesty the penalty rate on SMEs tax payers is 0.5 percent for assets below Rp10 billion and 2 percent on SMEs having assets above Rp10 billion and the rates are the same in all three periods.
Sri Mulyani said the contribution of SMEs tax payers, both individuals and companies to the tax amnesty program was relatively small until the end of the in the first period on Friday.
"Therefore, their participation needs to be increased in the following periods," she said.
The second and third periods are expected to be dominated by SMEs tax payers as they did not join in the queues in the first period.
"We will launch socialization as they need to be helped in book keeping and greater awareness of tax obedience," the minister said.
Until the end of the first period at 18.000 on Friday individual SMEs took part in the program only in 53,673 assets declaration statements with redemption of Rp2.55 trillion and corporate SMEs took part with 13,800 letters of asset declaration with redemption of Rp17 billion.
The government earned Rp97.1 trillion in redemption fund from the tax amnesty program until the end of the first period on Friday.
Sri Mulyani expressed thanks to the tax payers, saying Indonesia had been the most successful among countries ever adopting tax amnesty policy.
"We will continue to maintain the credibility by providing good services," she said. (WDY)