Jokowi amnesty favours tax cheats and punishes payers: OECD

Jakarta

INDONESIA'S tax amnesty is too generous and may even hamper compliance in an economy already ranked as one of Southeast Asia's worst for collection, said the Organisation for Economic Cooperation and Development.

As President Joko Widodo's government starts counting receipts in a programme that aims to raise 165 trillion rupiah (S$16.9 billion) in revenue, the OECD has criticised the rates on offer. Under the amnesty, tax-avoiding individuals and companies would pay between just 2 and 10 per cent in penalties, or around a third of what they should be.