Tax regulation to make level playing field
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