TEMPO.CO, Jakarta - The House of Representatives passed into laws the tax amnesty and amended 2016 state budget bills in a plenary session on Tuesday.

As expected all 10 factions in the House with the exception of the PKS faction gave approvals although a number of other factions also gave endorsement with some notes of objections.

The faction of the Islamic party said despite its rejection of a number of chapters in the draft laws it would bow the majority decision.

Even the ruling Indonesian Democratic Party of Struggle (PDI-P) reserved approval with a note for a number of chapters in the bill questioning the sources of the funds and the amount of redemption tariffs.

The amended budget has a deficit of Rp296.7 trillion with target for state income and grants totaling Rp1,786.2 trillion and state expenditures totaling Rp2,082.9 trillion.

The state income includes Rp165 trillion in taxes expected from the repatriation of capital as a result of the tax amnesty to be effective until March 2017.

The government hopes to narrow the deficit by pruning unproductive expenses by government ministries and agencies.

With the House endorsement, President Joko Widodo is expected to validate and announce the new laws immediately.

The tax amnesty bill calls for amnesty for rich Indonesian tax payers having funds parked abroad and not paying tax to the state.

With the amnesty they are expected to state their assets stashed abroad and bring home the assets to be invested in the country.

Those in the process of legal investigations or already convicted for tax fraud, are not entitled to the amnesty.

Tax amnesty is effective as from the date of the law coming into force effective until March 31 in 2017 with a certain redemption tariff for capital repatriation, and a declaration of assets parked abroad.

ANTARA