Tax reg­u­la­tion to make level play­ing field

The Jakarta Post - - BUSINESS -

JAKARTA: The Fi­nance Min­istry is will is­sue a tax reg­u­la­tion that will pro­vide a level play­ing field be­tween con­ven­tional and dig­i­tal busi­nesses, Fi­nance Min­is­ter Sri Mulyani In­drawati said in Jakarta on Thurs­day.

“The point is there are no new [reg­u­la­tion] pack­ages to dis­tin­guish [be­tween dig­i­tal and con­ven­tional busi­nesses], but we will for­mu­late the reg­u­la­tion to foster more ef­fec­tive tax col­lec­tion,” said Sri Mulyani.

She said the reg­u­la­tion was pre­pared by the Di­rec­torate General of Tax­a­tion, the Di­rec­torate General of Cus­toms and Ex­cise and the Fis­cal Pol­icy Of­fice (BKF).

Sri Mulyani said Pres­i­dent Joko “Jokowi” Wi­dodo had in­structed her min­istry to study the possibility of col­lect­ing taxes from small busi­nesses that used the mar­ket­place pro­vided by dig­i­tal busi­ness players.

“The Pres­i­dent has asked us to study the tax col­lec­tion for the small busi­nesses, which use on­line plat­forms,” said Sri Mulyani, adding that the tax of­fice was re­quired to give “spe­cial treat­ment” to small busi­nesses to help them com­ply with the tax reg­u­la­tion.

The min­is­ter said his of­fice would pay at­ten­tion to the Pres­i­dent’s di­rec­tion, but it had to em­pha­size fair tax treat­ment be­tween con­ven­tional and dig­i­tal busi­nesses. — JP

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