FINANCE MINISTRY TO ISSUE E-COMMERCE TAX REGULATION NEXT WEEK
The Director General of Taxation Ken Dwijugiaseteadi recently announced that the government will soon issue a ministerial regulation on the taxation of electronic commerce business. “Hopefully, [the regulation] will be issued next week,” he said.
Finance Minister Sri Mulyani believes that the new regulation would include taxes on e- commerce transactions, among other aspects. According to the minister, the government would announce the regulation to the public soon after it is issued.
The new regulation is important for the country to keep up with the rapid changes in its business and economy sectors.
The Executive Director for Indonesia Taxation Analysis Yustinus Prastowo revealed that the government needs to be ready for more changes in the e- commerce, especially when it comes to the emergence of social media. He advises the government to come up with a clear and comprehensive regulations that are able to support such a change. Jakarta’s traffic congestion gas cost the country as many as US$5 billion annually, according to National Development Planning Minister and National Development Planning Board
(Bappenas) Bambang Brodjonegoro.
The minister also explained that limited roadway capacity could not keep up with the increasing number of vehicles in, causing the capital city to suffer from a major traffic congestion. The slow progress on the public transportation infrastructure, including the MRT and LRT, are also responsible for this issue.
“We are 30 years late in building the MRT. We considered the project unfeasible financially, because we only thought about value and investment and revenues from the project,” the head of Bappenas said as reported by The Jakarta Post.
The first stage of the MRT project is currently still way underway, from Lebak Bulus, South Jakarta, to the traffic circle in Hotel Indonesia, Central Jakarta. Afterwards, the project will extend this route to Kampung Bandan in North Jakarta.
The MRT project is scheduled to finish in 2019. Brodjonegoro thinks that the government needs to carefully consider the potential outcome of this project. The country should think about the damage brought by traffic jams to the people, particularly when it comes to longer travel hours and more fuel purchase.