Surabaya, East Java (ANTARA News) - To fight tax evasion, the government will continue to be firm by imposing the system of gizjeling against delinquent taxpayers, Vice President Jusuf Kalla said here on Saturday.

He added that with the implementation of gizjeling, which means taking taxpayers as hostages, more tax evaders would be brought in for failing to fulfill their obligations.

"The imposition of gizjeling is in line with the law, and is part of efforts to ensure discipline among people with regard to paying their taxes. More delinquent taxpayers will be taken as hostages," he told newsmen while visiting a subsidized public housing project in the Jajar neighborhood of Surabaya, East Java.

He added that the government is determined to take a tough stance against taxpayers who do not meet their obligations, as there is no reason for people to not pay taxes.

He further noted that tax evaders in Indonesia were lucky for only being held hostage, unlike those abroad where they are jailed.

"In the United States, people are jailed for tax evasion," Kalla pointed out.

The vice president made the statement in response to the Directorate General of Taxs recent action of taking a delinquent taxpayer as a hostage.

This is a law enforcement measure to improve compliance, he stated, referring to the tax authorities move of sending a taxpayer to Salemba Penitentiary as a hostage for failing to meet his tax obligations.

SC (61), an executive of foreign investment company PT DGP operating in leather trading, was sent to Salemba Penitentiary as a hostage after the company failed to pay Rp6 billion in taxes for the last five years.

SC is the person responsible for the companys tax payments. He was arrested on Friday afternoon in Tanah Abang, Central Jakarta.

Furthermore, Director of Tax Examination Dadang Suwarno remarked in a press statement that the decision to bring in SC as a hostage was made after several actions were taken to make him pay the taxes. These included issuing notices, confiscation letters, and travel bans, as well as blocking assets.

SC will be at Salembe Penitentiary for six months. If the tax payments are not made, he will be kept there for another six months.(*)

Editor: Heru Purwanto
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