Jakarta. Tax amnesty program has potential to increase tax ratio to Gross Domestic Product (GDP). Directorate General of Taxation is optimistic that the tax ratio to GDP will increase from 11% in this year to 14% in 2017. Head of Sub Directorate for Billing Affairs at Directorate General of Taxation Dodi Syamsu Hidayat said that the increase in tax ratio is not only driven by the redemption fees revenues. “We expect to generate new tax objects from declared and repatriated assets”, said Dodi. The decreases in economic growth and revenues reflect that tax ratio will be stagnant, or even decreasing. During the last six years, Indonesia’s tax ratio was constant at the level of 11%-12%.
Tax amnesty May jack up tax ratio to 14%
Jakarta. Tax amnesty program has potential to increase tax ratio to Gross Domestic Product (GDP). Directorate General of Taxation is optimistic that the tax ratio to GDP will increase from 11% in this year to 14% in 2017. Head of Sub Directorate for Billing Affairs at Directorate General of Taxation Dodi Syamsu Hidayat said that the increase in tax ratio is not only driven by the redemption fees revenues. “We expect to generate new tax objects from declared and repatriated assets”, said Dodi. The decreases in economic growth and revenues reflect that tax ratio will be stagnant, or even decreasing. During the last six years, Indonesia’s tax ratio was constant at the level of 11%-12%.