Ministry of Finance of Republic of Indonesia : Minister of Finance highlights Low Participation in Tax Amnesty

Malang, 28/12/2016 MoF - During a public lecture in the University of Muhammadiayah Malang (UMM) on Wednesday (28/12), the Minister of Finance Sri Mulyani Indrawati also talked about tax amnesty. Although becoming the most successful tax amnesty in the world, she admitted that the participation's level was relatively low.

Out of millions registered taxpayer, according to the minister, only 461 of them are participating tax amnesty program, with the assets declaration or repatriation value of IDR3,940 trillion abd redemption of IDR94.8 trillion.

'Indeed, our tax amnesty program is successful, however, compared to the number of registered taxpayer, only 461 thousand joining the program. If they pay taxes properly, the revenue will increase from IDR1,300 trillion to IDR2,000 trillion, in accordance expenditure needs, so we do not need to have debt,' she said.

The Minister also said that 1 trillion tax paid is equivalent to the 9,400 teachers' salaries, helping 355 thousand poor people, build a 155 kilo meters of roads, build 3,451 bridges, and many other things. In addition, tax compliance will sharpen the advancement of education expenditure to 27.4 percent, and strengthen the development of infrastructure of 123.4 percent.

On the same occasion, the Minister also spoke about the condition of the global economy that has not fully recovered. However, amid the global uncertainty, in the last ten years, the Indonesian economy is better compared with other countries.

'Indonesia's growth is the third-highest in the world,' she said. Nevertheless, the minister reminded to remain aware of economic development. 'We are faced with an increasing imbalance, we must be aware of the trend of increasing inequality in our economy,' she said

For information, public lecture with the theme Tax Amnesty and Indonesia Economic Empowerment Strategy 2017 was attended by UMM Rector Fauzan hundreds of students of UMM.(fir)