VP Kalla Confident Repatriation Funds to Increase in September

TEMPO.CO, Jakarta - Vice President Jusuf Kalla has admitted that the amount of repatriated funds from the recently-passed Tax Amnesty scheme has yet to even come close to the government's target. That said, Kalla also said that he is optimistic that the flow of repatriated funds with begin to increase in September 2016.

"I am optimistic that in September, more [repatriated funds] will be flowing in," said Kalla in Jakarta on Saturday, August 28, 2016.

According to figures released by the Directorate General for Taxation's Tax Amnesty link, as per August 28, 2016, the state managed to repatriate some Rp7.66 trillion, around Rp14 trillion worth of funds were declared and Rp80.1 trillion in funds were declared from a domestic origin. Despite the quite impressive figures, the retribution that has to be paid under the Tax Amnesty scheme had only amounted to Rp1.2 trillion - or a mere 1.3 percent from the government's Rp165 trillion target.

According to Kalla, the reason behind the sluggish declaration and repatriation of funds could be attributed to the fact that many large corporations have yet to comply with the newly-passed Tax Amnesty regulation. "Surprisingly, it is small-and-medium enterprises (SMEs) who has abided by the Tax Amnesty law," said Kalla.

"The amount per enterprises is not much - but when added up together it could reach into the billions of Rupiah," continued Kalla.

Kalla also claimed that major corporations will abide by the Tax Amnesty scheme and repatriate their funds into the country. "It's not like they are not going to repatriate their funds - many are in the process of book keeping and gathering evidences [relating to previous tax payments]," he said.

"Basing the success of this scheme so early after it was passed is a bit premature," he said.

AMIRULLAH