The government is continuing its efforts to initiate specific tax on e-commerce transactions to boost tax revenuwith a target ofIDR 1,484.6 trillion for 2015. Despite some indications that additional revenue can be generated from e-commerce sector, the government is being reminded it needs to undertake proper research before establishing any tax scheme given the unique nature of e-commerce transaction.
At present, the government only imposes general income tax on e-commerce businesses. This, according to Mardiasmo, Deputy Minister of Finance, has resulted in the State missing out on the opportunity to generate income from this sector. Given these circumstances, a new regulation on e-commerce tax is urgently required to prevent further losses to the State.
“Apindo [Indonesian Employer Association] has stated that the annual average of e-commerce transactions in Indonesia has reached IDR 100 trillion. From this figure we can predict large potential income for the State,” said Mr. Mardiasmoon Tuesday.
Besides better providing for State income, Mr. Mardiasmo believes that a regulation on e-commerce is also important to enhance international free trade and competition.
“Besides anticipating State losses in the taxation sector, the regulation will also protect domestic businesses in facing international free markets,” added Mr. Mardiasmo.
Lawmaker Misbakhun(Commision XI)said that the government is under considerable pressure to meet targets for State income from tax. Nevertheless, the government must be careful in regulating any e-commerce tax. According toMisbakhum, e-commerce is not only for trade purpose.
“Some people use e-commerce for trading but other for development purposes. Policy on e-commerce must be suitable to accommodate all of its purposes,” said Mr. Misbakhum.
Similarly, Bima Laga, a member of the Indonesia E-Commerce Public Policy group contends that e-commerce is not merely for the sale and purchase of goods. His website for instance, although it promotes a number of goods for purchase, the actual transaction of the goods is performed through other websites, such as Lazada.
In regard to income, Mr. Laga explained that his website generates revenue from advertisements. As this is approach is common, if a special tax was to be imposed on e-commerce, Mr. Laga emphasizes the need for the government to first undertake in depth research on the sector.
The government is continuing its efforts to initiate specific tax on e-commerce transactions to boost tax revenuwith a target ofIDR 1,484.6 trillion for 2015. Despite some indications that additional revenue can be generated from e-commerce sector, the government is being reminded it needs to undertake proper research before establishing any tax scheme given the unique nature of e-commerce transaction.
At present, the government only imposes general income tax on e-commerce businesses. This, according to Mardiasmo, Deputy Minister of Finance, has resulted in the State missing out on the opportunity to generate income from this sector. Given these circumstances, a new regulation on e-commerce tax is urgently required to prevent further losses to the State.
“Apindo [Indonesian Employer Association] has stated that the annual average of e-commerce transactions in Indonesia has reached IDR 100 trillion. From this figure we can predict large potential income for the State,” said Mr. Mardiasmoon Tuesday.
Besides better providing for State income, Mr. Mardiasmo believes that a regulation on e-commerce is also important to enhance international free trade and competition.
“Besides anticipating State losses in the taxation sector, the regulation will also protect domestic businesses in facing international free markets,” added Mr. Mardiasmo.
Lawmaker Misbakhun(Commision XI)said that the government is under considerable pressure to meet targets for State income from tax. Nevertheless, the government must be careful in regulating any e-commerce tax. According toMisbakhum, e-commerce is not only for trade purpose.
“Some people use e-commerce for trading but other for development purposes. Policy on e-commerce must be suitable to accommodate all of its purposes,” said Mr. Misbakhum.
Similarly, Bima Laga, a member of the Indonesia E-Commerce Public Policy group contends that e-commerce is not merely for the sale and purchase of goods. His website for instance, although it promotes a number of goods for purchase, the actual transaction of the goods is performed through other websites, such as Lazada.
In regard to income, Mr. Laga explained that his website generates revenue from advertisements. As this is approach is common, if a special tax was to be imposed on e-commerce, Mr. Laga emphasizes the need for the government to first undertake in depth research on the sector.