TEMPO.CO, Jakarta - The government is expected to receive Rp1.18 trillion in tax amnesty redemption funds until the end of August 2016, Finance Minister Sri Mulyani said.

The minister said on Thursday that the amount of redemption money and Asset Declaration Letters (SPH) continue to increase every day, although their number is still nominal.

The government had launched the tax amnesty program in mid-July in the hope of collecting Rp165 trillion under the program, which will last for nine months until March 2017.

"We predict that redemption will increase significantly in September because the rate (of redemption during the first three-month period) is the lowest, both for individual and corporate taxpayers," Sri told a hearing by Commission XI on Financial Affairs at the House of Representatives (DPR) in Jakarta on Thursday.

Based on data from the Taxation Directorate General, the average amount of redemption money collected daily increased from Rp8.5 billion during 10 work days in July to Rp18.8 trillion in the first week of August, Rp60 billion in the second week, Rp95.5 billion in the third week and Rp108 billion in the fourth week (three work days).

The average number of SPHs received daily during 10 working days of July was recorded at 34 asset declaration documents, 190 in the first week of August, 469 in the second week, 814 in the third week and 1,331 in the fourth week (three working days).

A total of 77.02 percent of the taxpayers, who had applied for the tax amnesty program, are individual taxpayers or 7,698 SPHs, of which 31.24 percent are micro, small and medium businesses (UMKM). Some 22.98 percent or 2,297 SPHs are corporate bodies, of which 7.06 percent are UMKM.

Sri said she had not set a high target for redemption money and SPHs from the UMKM in the first three months of the program because the interest rate for them will not change from the beginning until the end of March 2017.

The tax amnesty program is divided into three periods of three months each. Those availing the amnesty program are required to pay redemption and declaration fees for the assets they have stashed abroad.

The declaration tariff has been set at 2 percent for the July to September period, 3 percent for the October to December period, and 5 percent for the January to March 2017 period.

Similarly, the redemption tariff has been set at 4 percent for the July to September period, 6 percent for the October to December period and 10 percent for the January to March 2017 period.

At least Rp4,000 trillion worth of funds stashed overseas are expected to be declared and Rp1,000 trillion of these are expected to be repatriated and invested in the country. The government is optimistic of earning Rp165 trillion from the tax amnesty program in the form of asset redemptions and declarations.

ANTARA