House to pass tax amnesty bill by March

JAKARTA. The House of Representatives will discuss the tax amnesty draft bill at the plenary session on Tuesday, targeting to pass it into law before the House enters a recess period on March 12.

House speaker Ade Komarudin said the government should take the new tax revenue target and tax amnesty policy into account in its submission of the 2016 revised state budget.

"We are determined to have it [the Tax Amnesty bill] completed during the current sitting session," he said at the State Palace on Monday.

Sofjan Wanandi, the Vice President's chief economic adviser, estimated that the government might pull in around Rp 50 trillion to Rp 100 trillion in repatriated capital by offering a discount rate to tax evaders with income and assets kept abroad.

"I think we will get Rp 50 trillion to Rp 100 trillion from the tax amnesty," he said.

The bill allows taxpayers applying for the amnesty between January and March to pay only 2 percent of their assets as a penalty. This increases to 3 percent if the application is lodged between April and June, and to 5 percent if applicants submit their applications between July and December. (Ayomi Amindoni)