PHL to adopt Indonesia-type tax amnesty program

The Philippine government is planning to implement an Indonesia-type tax amnesty program to raise much needed revenue for the government.

Quoting Finance secretary Carlos Dominguez, a report on dzBB radio said that the planned tax amnesty program could be implemented after the government is done running after those who are not paying the right taxes.

Dominguez was quoted as saying that the government trained first its attention on running after tax evaders to show that the state is capable holding them responsible for their misdeeds. 

Citing the success of Indonesia, Domiguez said the tax amnesty program is expected to lessen the budget deficit.

For nine months, Indonesia offered tax incentives and immunity from prosecution of tax evaders, who were only meted out with small penalty.

Dominguez said the Philippine government would try Indonesia's tact to encourage tax evaders to honestly declare their funds. 

He said that Indonesia increased its revenue by over $10 billion from the tax program.

But Dominguez said that running after big tax evaders should be completed first before implementing the amnesty program. —LBG, GMA News