Minister of Finance: Tax is a National Backbone

Jakarta, 29/12/2016 MoF - In the 'Tax Amnesty Declaration' in Semarang, Minister of Finance Sri Mulyani Indrawati explained about the important role and participation of all parties to contribute to the success of not only the tax amnesty, but also tax compliance in order to maintain state sovereignty.

Furthermore, the minister asserted that if all stakeholders have a sense of great responsibility, as well as play an active role in socializing the importance of tax compliance and tax amnesty program, Indonesia will grow much better.

'I believe Indonesia has a much better future,' the minister said when delivering her speech in the 'Tax Amnesty Declaration of SME Customers, Partners and Families of the Bank of Central Java,' at the Crowne Plaza Hotel, Semarang on Thursday (29/12).

As one of the fiscal instruments, tax has an important role to build the country and support the government. Moreover, it can also be used as an instrument to stimulate the economy.

'The rise and fall of a country is highly dependent on the country's moves to collect the tax,' said the minister.

Tax as one source of revenue in the State Budget also plays an important role in maintaining the sovereignty and national unity of Indonesia. To that end, it should be maintained and improved continuously.

'One very important component in the revenues (State Budget) is tax. It is a national backbone, 'said the minister.

Fixed Rate Tax Amnesty for MSME Sector

On the same occasion, the Minister also explained that the micro, small and medium enterprises (SMEs) are provided special treatment in the tax amnesty.

'The government wants to support SMEs by providing fixed redemption rate until the end of the tax amnesty,' she said.

It is stated that for SMEs whose assets value under IDR10 billion will be imposed redemption rate at 0.5%. While those with assets value over IDR10 billion, the tariff is 2%. With this tariff policy, the minister hopes to more than fifty thousand SMEs that are customer of Bank of Central Java to participate in tax amnesty program.

'All 50,000 owned TIN, submitted SPT, and followed tax amnesty. For those who do not have a TIN, this is a chance', said the minister.(tbg/ab)