JAKARTA. Finance Minister Bambang Brodjonegoro said parliamentary debate on the tax amnesty bill would start in the next session of the legislative body.
"God willing, we and the Parliament would discuss the bill. It would serve as an entry for the tax payers that they would be willing to bring their funds parked abroad to Indonesia," Bambang said here on Tuesday.
He said passing the tax amnesty bill into law is a priority in the government program as it is potential in increasing tax revenues .
He said with the tax amnesty, tax payers who have not reported their assets abroad would be encouraged to comply with their obligation to submit reports to the taxation authorities.
He said he hoped tax payers would use the opportunity to meet their obligation without facing legal action.
Failure to utilize the opportunity would risk facing crack down by the government on delinquent tax payers, he said.
"First we are focused on tax amnesty, after that law enforcement. The sanction for tax evasion is penalty up to 46 percent," he said.
He said the government would prepare data of the assets of tax payers that tax amnesty or law enforcement could be effectively implemented.
Indonesian oil magnate Arifin Panigoro said he agreed with the tax amnesty initiative.
"I personally is okay provided that the fund would be used properly for economic development rather than parking the funds abroad ," said Arifin, who has received a token of appreciation for contribution to the state tax revenues in 2015.
Big shortfall in tax revenues has prompted the tax amnesty policy.
Bambang said tax revenues in the first quarter of this year totaled Rp177 trillion or Rp4 trillion lower than in the same period last year.
He said tax revenues in the first quarter of 2016 was only 13 percent of the annual target of Rp1,360 trillion.
He attributed the shortfall partly to a decline in in value added tax revenue.
The minister, however, said he was optimistic that the tax revenues would grow faster in the rest of the year that total revenue in the whole of 2016 would exceed revenues in 2015.
Last year, tax revenues totaled Rp1,056 trillion.
Meanwhile Taxation Director General Ken Dwijugiasteadi attributed the poor performance in tax collection in the first quarter of this year to lower oil and gas tax income in addition to VAT .
