Indonesia Banking Growth Helped by This Policy
Indonesia Banking Growth Helped by This Policy
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JAKARTA - First stage of the tax amnesty program claimed ended in success. This policy also touted change Indonesian banking structure.
"This policy will be healthy. Banks will have liquidity," says Investment Director of Aberdeen, Bharat Joshi after the signing agreement between Aberdeen and Mandiri Sekuritas in Jakarta, Wednesday (4/10).
He did not entirely agree to prediction that state if the tax amnesty will only nourish the large banks who incidentally became the beneficiary banks repatriation fund.
"Clearly, the liquidity for banks will remain smooth. For major banks, the liquidity is greater and small interest rate. For smaller banks, also can be liquidity and interest rates are great. Clearly, small banks still have market itself," explained Joshi.
In same time, President Director of Mandiri Sekuritas, Silvano Rumantir added, repatriation of funds can also balance the structure of goverment bond which 40 percent comes from foreign funds.
"I think the 'bubble' will not happen if in management as well," he said.
![Indonesia Banking Growth Helped by This Policy]()
Even so, this program still have some homework. Government’s bigger purpose of widening the country’s tax base still seems far from reach.
During the first three months of the program’s implementation that ended on Sept. 30, the program managed to persuade taxpayers to declare Rp 3.6 quadrillion (US$277.18 billion) in assets, around 90 percent of the targeted Rp 4 quadrillion.
At the same time, the penalty or redemption payment stood at Rp 89.1 trillion, 54 percent of the targeted Rp 165 trillion.
However, those funds were declared by fewer than 400,000 taxpayers, a tiny fraction of the country’s 30 million taxpayers, according to data from Directorate General of Taxation, Finance Ministry’s.
A majority of the participants during the first phase were those who already had a taxpayer number and had submitted their tax return forms (SPT), meaning that the tax amnesty program was only successful in attracting a small number of new taxpayers, recorded at 15,856.
“That the new taxpayer number is very small, considering the number of new potential taxpayers could reach around 20 to 25 million,” said Center for Indonesia Taxation Analysis (CITA) executive director, Yustinus Prastowo on Tuesday (4/10).
CITA estimates there are 50 million to 55 million people currently eligible as taxpayers, those with an annual income above Rp 54 million per person, but only 30 million of them already have tax numbers.
As a comparison, a previous program dubbed “the sunset policy” garnered more than 3.5 million new taxpayers during a 12 month period in 2008.
Back then, the government allowed corporate and individual taxpayers to pay back taxes without penalties or interest for up to one year from the start of the amnesty date.
When the sunset policy was extended for two months in 2009, the government attracted an additional 2.1 million new taxpayers.
"This policy will be healthy. Banks will have liquidity," says Investment Director of Aberdeen, Bharat Joshi after the signing agreement between Aberdeen and Mandiri Sekuritas in Jakarta, Wednesday (4/10).
He did not entirely agree to prediction that state if the tax amnesty will only nourish the large banks who incidentally became the beneficiary banks repatriation fund.
"Clearly, the liquidity for banks will remain smooth. For major banks, the liquidity is greater and small interest rate. For smaller banks, also can be liquidity and interest rates are great. Clearly, small banks still have market itself," explained Joshi.
In same time, President Director of Mandiri Sekuritas, Silvano Rumantir added, repatriation of funds can also balance the structure of goverment bond which 40 percent comes from foreign funds.
"I think the 'bubble' will not happen if in management as well," he said.
Even so, this program still have some homework. Government’s bigger purpose of widening the country’s tax base still seems far from reach.
During the first three months of the program’s implementation that ended on Sept. 30, the program managed to persuade taxpayers to declare Rp 3.6 quadrillion (US$277.18 billion) in assets, around 90 percent of the targeted Rp 4 quadrillion.
At the same time, the penalty or redemption payment stood at Rp 89.1 trillion, 54 percent of the targeted Rp 165 trillion.
However, those funds were declared by fewer than 400,000 taxpayers, a tiny fraction of the country’s 30 million taxpayers, according to data from Directorate General of Taxation, Finance Ministry’s.
A majority of the participants during the first phase were those who already had a taxpayer number and had submitted their tax return forms (SPT), meaning that the tax amnesty program was only successful in attracting a small number of new taxpayers, recorded at 15,856.
“That the new taxpayer number is very small, considering the number of new potential taxpayers could reach around 20 to 25 million,” said Center for Indonesia Taxation Analysis (CITA) executive director, Yustinus Prastowo on Tuesday (4/10).
CITA estimates there are 50 million to 55 million people currently eligible as taxpayers, those with an annual income above Rp 54 million per person, but only 30 million of them already have tax numbers.
As a comparison, a previous program dubbed “the sunset policy” garnered more than 3.5 million new taxpayers during a 12 month period in 2008.
Back then, the government allowed corporate and individual taxpayers to pay back taxes without penalties or interest for up to one year from the start of the amnesty date.
When the sunset policy was extended for two months in 2009, the government attracted an additional 2.1 million new taxpayers.
(rnz)
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