Economics
Indonesia Approves Tax Amnesty to Fund Widening Budget Gap
- Government facing revenue squeeze as economic growth slows
- Central bank estimates amnesty will draw 560 trillion rupiah
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Indonesia’s parliament approved a tax amnesty that the government says will draw in billions of dollars needed to finance a widening budget gap as it steps up infrastructure spending to spur economic growth.
Lawmakers voted in favor of the bill during a plenary session in Jakarta on Tuesday, among the final steps before it becomes law. Individuals who repatriate undeclared assets held abroad will face a penalty of 2 percent to 5 percent, according to the bill.