House to pass tax amnesty bill on Tuesday

JAKARTA. Despite varying opinions among factions in the House of Representatives, the legislative body is set to approve the tax amnesty bill during Tuesday’s plenary meeting.

House Speaker Ade Komarudin said on Monday that in addition to the tax amnesty bill, the House would also approve the revised 2016 state budget. “Tomorrow, (the approval process) will be smooth, like when the National Police chief was approved during Monday’s plenary meeting," Ade said at the House complex in Jakarta.

House Commission XI overseeing banking and finance is expected to finish deliberating the bill with Finance Minister Bambang Brodjonegoro on Monday evening.

Gerindra Party faction lawmaker Soepriyatno, who leads the tax amnesty working unit, said two factions within the House rejected two points of the bill –the tax amnesty and tax rates. He refused to name the factions that had yet to approve the bill.

“Seven factions have decided their stances on tax rates, including the rate for small and medium enterprises, which is at 0.5 percent," Soepriyatno said on Monday.

The government expects the law to be enacted on July 1, with the hope that it will help repatriate Rp 165 trillion (US$12,31 billion) parked abroad.

In the bill, the government offers tax breaks to individuals and companies who declare and transfer their untaxed wealth to Indonesia. (Erika Anindita Dewi)