Tax forgiveness a strategy to ensure capital inflow: Observer

Padang, W Sumatra (ANTARA News) - The governments tax amnesty policy is a good strategy to trigger massive capital inflow into Indonesia, according to Elfindri, an economic observer at Andalas University (Unand) in West Sumatra.

"It is merely a strategy to prompt more capital inflow from abroad to Indonesia. How else those who keep their money abroad can be taxed?" Elfindri remarked here on Tuesday.

According to him, the tax amnesty program launched by the government was indeed good but complicated when it comes to implementation as it will need hordes of tax personnel.

"The capacity of the tax personnel to carry out this plan is not known so far," he emphasized.

He also noted that there should be a deadline for Indonesian citizens stashing their money abroad, even in tax havens, to bring the same back to the country.

Earlier, President Joko Widodo (Jokowi) had argued that the tax amnesty program was to encourage economic development in the country.

"The aim is to ensure that the tax amnesty benefits our common interests, the nation and the people, and does not merely serve the interests of any company, individual or group," he explained.(*)