balinews Indonesia plans to offer a tax amnesty soon to help coax money back into the country and boost dwindling state revenue, the Kontan newspaper reported, citing a draft of a law being discussed by the government and a parliamentary commission. The tax breaks would be offered to taxpayers with undisclosed wealth at home and abroad, such as in neighbouring Singapore, which has long been a favourite spot for rich Indonesians to park their funds. Taxpayers who make such disclosures before the end of this year will be taxed at a 3 per cent rate, the newspaper said. That would go up progressively to 5 per cent for those declaring their wealth in January-June next year and 8 per cent in the following six months. Indonesia's tax rate on individuals can range from 5-30 per cent, and 20-25 per cent for companies. One member of parliament involved in the discussion, Misbakhun, confirmed the report. Tax office spokesman Mekar Satria Utama declined to comment. The tax amnesty draft was proposed by the parliamentary commission overseeing tax collection and is subject to government approval. It would still need to be passed by parliament. The government of South-east Asia's largest economy is struggling to boost revenues as prices of its key commodity exports slide. Indonesia plans to offer tax amnesty soon as revenues slump, SE Asia News & Top Stories - The Straits Times
