The proposed Tax Amnesty Bill has received support from business lobby groups as they hope it will have a multiplier effect on job creation, economic improvement and tax compliance. House of Representatives Commission XI, which oversees finance and banking, held the session to hear feedback from Apindo, the Indonesian Young Entrepreneurs Association (Hipmi) and the Indonesian Chamber of Commerce and Industry (Kadin).
Indonesian Employers Association (Apindo) said in a hearing session on Tuesday (19/4) that the organization was in favor of the bill. Apindo told lawmakers that any information the government receives when tax dodgers repatriate their assets from abroad during the tax amnesty initiative should be used to expand the tax office's database.
The business representatives also said the government might need to include the tax amnesty initiative as a part of the country's taxation reform through the General Taxation Provisions and Procedures (KUP) Law revision, meaning that they want a discussion of the Tax Amnesty Bill and the KUP Law amendment to proceed simultaneously.
The latest known draft of the Tax Amnesty Law states that taxpayers only need to pay between 1 percent and 3 percent tax on their net wealth increase, if they agreed to repatriate their money. The Tax Amnesty Bill is currently under discussion as Commission XI holds a series of hearing sessions with experts, business leaders and other stakeholders. The government hopes that the bill will come into effect in June.
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