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Finance ministry says no more tax amnesty

Tempo - August 1, 2022

Antara, Jakarta – The Finance Ministry's Special Staffer for Strategic Communication Yustinus Prastowo stated that the government would no longer hold tax amnesty programs such as the Tax Voluntary Disclosure Program (PPS).

"If the [tax] pardon is given too often, it will create a negative mentality in taxpayers," he said in the release of the Indonesian Political Indicators Survey monitored in Jakarta, Sunday, July 31, 2022.

He mentioned that permanent tax amnesty that is carried out continuously could have a negative impact on people's tax compliance in the long term. "This is bad for the authority and reduces trust in them," Yustinus added.

After PPS was closed at the end of June 2022, people still wanted a similar program to be continued or repeated. "Some people want this program to be repeated because they do not know [about the program]. While in fact, we have disseminated it for eight months since the Law on the Harmonization of Tax Regulations (HPP) was issued, there are still many who do not understand," he said.

Yustinus claimed he did not agree with the repetition of the PPS and hoped that business actors and members of the legislature would support the government's decision.

"We do not agree on this, and the DPR and businessmen should also not agree because it can create a bad mentality," he underlined.

Finance Minister Sri Mulyani Indrawati stated that the government managed to collect income tax (PPh) totaling Rp61.01 trillion from 247.910 taxpayers during the PPS which was carried out from early January to the end of June 2022.

Source: https://en.tempo.co/read/1617839/finance-ministry-says-no-more-tax-amnest