Govt dismisses rumors on drastic hike in exit tax<\/p>\n
JAKARTA (JP): Director General of Taxation Anshari Ritonga
\ndenied on Thursday rumors that the government would raise the
\namount of the exit tax in a bid to deter a massive exodus of
\npeople fearful of a chaotic general election in June.<\/p>\n
\"It's absolutely not true. We've never considered such a
\nmeasure. I'll sue those who started the rumor,\" he told
\nreporters on the sidelines of a debate of the 1999\/2000 state
\nbudget draft with the House of Representatives Commission VIII on
\nstate budget and finance.<\/p>\n
Early this week rumors started that the government was
\nplanning to raise the exit tax to Rp 4 million from the current
\nRp 1 million per person.<\/p>\n
Anshari said that such a rumor might have been designed by
\npeople trying to cause the country deep trouble.<\/p>\n
He added that the rumors could have a devastating impact on
\nthe economy if not contained.<\/p>\n
Indonesia is scheduled to hold a general election on June 7,
\nwhich is expected to be the country's first free and open
\nelection after more than 30 years under the authoritarian rule of
\nformer president Soeharto.<\/p>\n
But bloody riots and unrest which have plagued several parts
\nof the country since the downfall of Soeharto have raised fears
\nthat the election may lead to disorder.<\/p>\n
The country witnessed a massive capital outflow and exodus of
\ncitizens particularly those of Chinese descent before and shortly
\nafter the fall of Soeharto in May last year.<\/p>\n
Anshari admitted that last year's exodus boosted the
\ngovernment's revenue from the exit tax.<\/p>\n
He declined to provide the figure, but said that individual
\nincome tax receipts for the current 1998\/1999 fiscal year ending
\nin March would most likely exceed the target.<\/p>\n
Anshari told legislators that the income tax target in the
\n1999\/2000 fiscal year could still be reached despite expected
\nlower revenue from time deposits, which was the primary booster
\nof income tax revenue in the current fiscal year, as interest
\nrates had fallen to around 35 percent from more than 70 percent
\nin September last year.<\/p>\n
He pointed out that income tax revenue was expected primarily
\nfrom the interest rates on the government bonds issued for the
\nrecapitalization of the country's ailing banks, capital gains
\nresulting from the sale of assets owned by liquidated banks, and
\nfrom agribusiness and export industries.<\/p>\n
The government has set income tax revenue in the next fiscal
\nyear to increase to Rp 42.63 trillion, a 57 percent hike from the
\ntarget in the 1998\/1999 fiscal year.<\/p>\n
Anshari also said that President B.J. Habibie's recent
\ndecision to provide a tax holiday for foreign investors entering
\ncertain industries was part of the agreement reached among
\nSoutheast Asian nations in Hanoi recently to lure foreign
\ninvestors. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-dismisses-rumors-on-drastic-hike-in-exit-tax-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}