Indonesia might offer a second tax amnesty. But how successful was the first?

People pass by a banner promoting the government's tax amnesty at the Tanah Abang textile market in Central Jakarta. - Antara

JAKARTA (The Jakarta Post/ANN): With plans of a new tax amnesty resembling that of 2016, the government seeks to increase state revenue as a quick fix for a huge budget deficit caused by the coronavirus pandemic, but critics warn that a second programme may encourage tax evasion.

Coordinating Economic Minister Airlangga Hartarto said on May 19 that the plan was included in a proposed amendment to Law No. 6 of 1983 on general provisions and tax procedures, along with a plan to increase value-added tax (VAT), high-net-worth individual (HNWI) tax and many other changes.