Indonesia carried out tax amnesty programmes in 2016 and 2022, when Joko Widodo was president. - AFP
JAKARTA: Indonesia is considering the possibility of a new tax amnesty programme, a senior lawmaker said on Tuesday, which would be the country's third in the past decade despite criticism that repeatedly offering the relief could lead to more tax avoidance.
Mukhamad Misbakhun, head of the parliamentary commission overseeing finance affairs, said there were no details on the plan so far and lawmakers would begin discussions with the government.
South-East Asia's largest economy carried out tax amnesty programmes in 2016 and 2022, when Joko Widodo was president.
Taxpayers were offered lower-than-normal tax rates if they disclosed unreported assets, while authorities pledged to penalise those who did not participate. The two programmes uncovered more thanUS$340 billion worth of assets.
Widodo had pledged not to offer another amnesty, amid criticism it could encourage tax avoidance as people might wait for another amnesty instead of paying taxes correctly.
President Prabowo Subianto, who took office last month, did not discuss a tax amnesty during election campaigning, but he has promised to increase revenues to fund his platform.
"This is a new government," Misbakhun told reporters when asked about the criticisms of repeated amnesties.
"We can discuss the amnesty in the context of a regular programme, while still educating the taxpayers to still comply. However, at the same time we must also provide a programme for past mistakes so that they do not avoid taxes all the time without a way out," he added.
The finance ministry did not immediately respond to a request for comment. - Reuters
