Tax Amnesty Should Accompanied with Changes in Other Laws
Tax Amnesty Should Accompanied with Changes in Other Laws
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JAKARTA - Tax Amnesty Bill leaves a lot of negative influences. Former Senior Deputy Governor of Bank Indonesia (BI) Anwar Nasution warned, Tax Amnesty bill would also weaken the tax administration and reduce tax collections.
"Investors will not be willing to buy country securities and SUKUK without their government's confidence to be able to increase revenues in order to pay off," said Anwar in Jakarta, Friday (17/6).
He also reminded that this bill has the potential to cause social jealousy and hate for their perceptions of non-indigenous groups who more enjoy tax amnesty. Many non-native-owned business group exists in Indonesia, but revenue and its profit more parked abroad. The group is once more named in Panama Papers as well as enjoying the BLBI scandal.
"Whereas non indigenous money was utilized a wide variety of crimes, and also the BLBI scandal. Who does not want to accept it? Moreover, in the conditions in Indonesia are classified as difficult as it is today, high unemployment and the gap widened," he explained.
The existence of tax amnesty also will give the perception of the world that Indonesia is a failed state because of not being able to enforce the rule of law in their own country.
It is also disclosed by economic consulting, M Hidayatullah Aziz. He saw tax amnesty policy will be useless if not accompanied changes in other laws.
"Revision General Provisions Taxation Act should also be the way. Revisions are also made to ensure tax amnesty proceeds as expected, which is to encourage the flow of funds repatriation and improve the tax base," said Aziz.
He also warned, the implementation of Tax Amnesty Bill also have constraints of Singapore also immediately implement a similar policy to the tax amnesty in Indonesia.
"Singapore also do not want the all funds which parking there be withdrawn. That's why they also make a similar policy there. It also should be observed by the Indonesian government," he said.
"Investors will not be willing to buy country securities and SUKUK without their government's confidence to be able to increase revenues in order to pay off," said Anwar in Jakarta, Friday (17/6).
He also reminded that this bill has the potential to cause social jealousy and hate for their perceptions of non-indigenous groups who more enjoy tax amnesty. Many non-native-owned business group exists in Indonesia, but revenue and its profit more parked abroad. The group is once more named in Panama Papers as well as enjoying the BLBI scandal.
"Whereas non indigenous money was utilized a wide variety of crimes, and also the BLBI scandal. Who does not want to accept it? Moreover, in the conditions in Indonesia are classified as difficult as it is today, high unemployment and the gap widened," he explained.
The existence of tax amnesty also will give the perception of the world that Indonesia is a failed state because of not being able to enforce the rule of law in their own country.
It is also disclosed by economic consulting, M Hidayatullah Aziz. He saw tax amnesty policy will be useless if not accompanied changes in other laws.
"Revision General Provisions Taxation Act should also be the way. Revisions are also made to ensure tax amnesty proceeds as expected, which is to encourage the flow of funds repatriation and improve the tax base," said Aziz.
He also warned, the implementation of Tax Amnesty Bill also have constraints of Singapore also immediately implement a similar policy to the tax amnesty in Indonesia.
"Singapore also do not want the all funds which parking there be withdrawn. That's why they also make a similar policy there. It also should be observed by the Indonesian government," he said.
(rnz)
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