JAKARTA. The first phase of tax amnesty might raise Rp 93.8 trillion of redemption fees and Rp 137 trillion of repatriation funds. However, several bankers said that the tax amnesty revenues are insufficient to boost liquidity. President Director of Bank Central Asia (BCA) Jahja Setiaatmadja queries that the tax amnesty revenues may drive banking liquidity and credit. Jahja added that the tax amnesty revenues will become idle funds if the tax amnesty participants prefer to invest their funds by purchasing stocks. According to Jahja, some repatriation funds flow to banking sector under the scheme of debts settlement. During the first period of tax amnesty, an Rp 37.1 trillion of redemption fews flew to BCA. However, the funds will reduce the interest rate income, since the debtors tend to settle the credit before the maturity period.
Tax amnesty less significant for credit growth
JAKARTA. The first phase of tax amnesty might raise Rp 93.8 trillion of redemption fees and Rp 137 trillion of repatriation funds. However, several bankers said that the tax amnesty revenues are insufficient to boost liquidity. President Director of Bank Central Asia (BCA) Jahja Setiaatmadja queries that the tax amnesty revenues may drive banking liquidity and credit. Jahja added that the tax amnesty revenues will become idle funds if the tax amnesty participants prefer to invest their funds by purchasing stocks. According to Jahja, some repatriation funds flow to banking sector under the scheme of debts settlement. During the first period of tax amnesty, an Rp 37.1 trillion of redemption fews flew to BCA. However, the funds will reduce the interest rate income, since the debtors tend to settle the credit before the maturity period.