31 Dec '16, 7am

Testing the limits of Indonesia's tax amnesty program - East Asia Forum

Testing the limits of Indonesia's tax amnesty program - East Asia Forum

Indonesia’s tax amnesty program has exceeded expectations. Many observers were skeptical that the Ministry of Finance’s target of 165 trillion rupiah (US$12.5 billion) in tax redemption could be achieved after Indonesia’s central bank gave an initial estimate of around 54 trillion rupiah (approximately US$4 billion). But the first phase of the tax amnesty program from July–September 2016 ended with a total redemption of around 97 trillion rupiah (US$7 billion) — more than half of the total target. Given there are two more phases (October–December 2016 and January–March 2017), the program’s target is looking increasingly realistic. Several factors might explain this achievement. First, the return of Sri Mulyani as the Minister of Finance seems to have helped restore public confidence in the ministry. Notwithstanding her measured and careful take on the tax amnesty policy, M...

Full article: http://www.eastasiaforum.org/2016/12/31/testing-the-limit...

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