Golkar Confident Tax Amnesty Bill to Roll Out This Year, Despite Setya Setback
Jakarta. A Golkar Party lawmaker has played down concerns that a recent scandal embroiling the speaker of the House of Representatives could stall a bill crucial to meeting the government's revenue target next year.
"Politically speaking, it can be done. We have the final draft ready. The bill will be passed at the end of the House of Representative's yearly session. It's very likely," Mukhamad Misbakhun, a Golkar party lawmaker on Commission XI overseeing banking and finance, said.
The so-called tax amnesty bill, providing leeway to tax evaders and potentially boosting tax revenue by a tenth, was meant to be passed during a plenary session on Tuesday, but the House failed to meet the required number of present members for a law to pass.
The failure sparked speculation it was part of a larger ploy to delay the bill, following allegations made by Energy and Mineral Resources Minister Sudirman Said against House Speaker Setya Novanto for shaking down mining giant Freeport Indonesia.
"After all the commotion, I think the bill will be postponed until next year. I don't know whether the tax amnesty will be discussed in the plenary session or not," businessman Sofjan Wanandi, chairman of the Vice President's advisory team, said as quoted by Antaranews.com.
Other observers believe that any delay may take away momentum to attract potential taxpayers.
"If the tax amnesty is not immediately implemented, I'm pessimistic that we can do the initiative," Budi Yanto Lusli, Synthesis Development chief executive, said.
Government projections estimate the amnesty plan will pull in around Rp 100 trillion ($7.2 billion) repatriated from overseas by offering a discounted rate to tax evaders who declare income and assets.
In the final draft of the bill, a rate of 1.5 percent is offered to assets reported before Jan. 1, local news portal Kontan said.
According to Ken Dwijugiasteadi, the newly appointed interim tax director general, tax revenue collection this year will only reach Rp 1,035 trillion, or 80 percent of the targeted Rp 1,294 trillion.
Indonesia has set its 2016 tax collection target — excluding excise and duties — at Rp 1,360 trillion, 5.1 percent higher than this year's target.
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