KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: Indonesia is considering reviving its tax amnesty program in 2025 to increase state revenue and broaden the tax base, amid economic challenges.
Indonesia’s parliament has added a Tax Amnesty Law revision to its list of priority bills for 2025, signaling that the government may roll out its third tax amnesty as early as next year. This move comes as President Prabowo Subianto’s administration seeks to tackle weakening commodity prices and prepare for massive spending plans.
Key Developments:
Tax Amnesty Discussions in 2025
- Lawmakers will revisit the Tax Amnesty Law during technical discussions with the government, aiming to follow up on previous programs that ended in 2017 and 2022.
- According to Mukhamad Misbakhun, chairman of parliament’s finance commission, the revised law could take effect next year.
Revenue Challenges Ahead
- Weaker commodity prices threaten to reduce tax receipts, increasing pressure on the government to find alternative revenue streams.
- Indonesia’s budget deficit cap of 2.5% of GDP for 2025 may face strain due to the government’s spending commitments.
Track Record of Tax Amnesty
- The 2022 tax amnesty generated 61 trillion rupiah (RM17.21 billion), less than half of the 134 trillion rupiah collected in the 2017 program.
- Critics have warned that repeated amnesties risk undermining long-term tax compliance, as taxpayers may delay payments in anticipation of future amnesty opportunities.
Why It Matters:
The revival of a tax amnesty highlights the government’s efforts to address short-term revenue gaps, but its success will depend on policy design and execution. Effective implementation could expand Indonesia’s taxpayer base and stabilize fiscal health, ensuring the government can meet spending priorities without breaching deficit targets.
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