Indonesia mulls tax amnesty to boost revenue

Indonesia is exploring the possibility of reintroducing a tax amnesty programme to increase state revenue and broaden its tax base, said Muhammad Misbakhun, chairman of Commission XI of the House of Representatives overseeing financial affairs, on Tuesday.

Misbakhun expressed support for including discussions on reviving the tax amnesty in the list of priority bills for 2025. He emphasised the need to offer taxpayers a chance to correct past mistakes and prevent persistent tax avoidance.

Under the proposed tax amnesty programme, taxpayers who voluntarily disclose previously unreported assets would be subject to lower-than-normal tax rates. However, penalties would be imposed on those who fail to disclose their assets.

Newly-inaugurated President Prabowo Subianto has set an ambitious goal of expanding Indonesia’s economy to 8 per cent during his administration, which will require increased government spending.

Attribution: Xinhua

Subediting: Y.Yasser