Selasa, Juni 29, 2021

PPN Objects and Facilities Addressed under Draft Bill on General Taxation Provisions and Procedures Set for Revision

In an effort to boost tax revenues, as well as to establish a fair and well-targeted tax regime, Sri Mulyani, Indonesia’s Minister of Finance, recently revealed that the government is aiming to revise the various Value-Added Tax (Pajak Pertambahan Nilai – “PPN”) objects and PPN facilities that are specifically addressed under the Draft Bill on General Taxation Provisions and Procedures (“Draft Bill”).
Indonesia’s PPN performance is still considered low, as only 63.58% of the total potential PPN revenue is currently being realized. The cause of this low level of performance is believed to be the four exceptions that apply to goods and the further 17 exceptions that relate to services as PPN objects. These many exceptions, as Mrs. Mulyani has observed, have led to an overall imbalance in terms of the contributions that are being made by different business sectors to the country’s gross domestic product (produk domestik bruto/PDB) and PPN.
As a result, the government has decided to revise the listed PPN objects and the granting of related facilities, as addressed under the Draft Bill. Goods and services that are set to be exempt from the collection of PPN under the Draft Bill include the following: 1) Goods that are already the objects of regional taxes and regional levies (pajak daerah dan retribusi daerah/PDPR), including restaurants, hotels, parking facilities and entertainment facilities; and 2) Gold bullion used as state foreign-exchange reserves, state securities and lecture services (jasa penceramah).
Meanwhile, consumer goods and services that are utilized by the general public, including staple goods, health services and education services, will be subject to either PPN rates that are lower than normal or the non-collection of PPN. Meanwhile, underprivileged citizens may also be compensated through the provision of subsidies. _(ANT)

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In an effort to boost tax revenues, as well as to establish a fair and well-targeted tax regime, Sri Mulyani, Indonesia’s Minister of Finance, recently revealed that the government is aiming to revise the various Value-Added Tax (Pajak Pertambahan Nilai – “PPN”) objects and PPN facilities that are specifically addressed under the Draft Bill on General Taxation Provisions and Procedures (“Draft Bill”).
Indonesia’s PPN performance is still considered low, as only 63.58% of the total potential PPN revenue is currently being realized. The cause of this low level of performance is believed to be the four exceptions that apply to goods and the further 17 exceptions that relate to services as PPN objects. These many exceptions, as Mrs. Mulyani has observed, have led to an overall imbalance in terms of the contributions that are being made by different business sectors to the country’s gross domestic product (produk domestik bruto/PDB) and PPN.
As a result, the government has decided to revise the listed PPN objects and the granting of related facilities, as addressed under the Draft Bill. Goods and services that are set to be exempt from the collection of PPN under the Draft Bill include the following: 1) Goods that are already the objects of regional taxes and regional levies (pajak daerah dan retribusi daerah/PDPR), including restaurants, hotels, parking facilities and entertainment facilities; and 2) Gold bullion used as state foreign-exchange reserves, state securities and lecture services (jasa penceramah).
Meanwhile, consumer goods and services that are utilized by the general public, including staple goods, health services and education services, will be subject to either PPN rates that are lower than normal or the non-collection of PPN. Meanwhile, underprivileged citizens may also be compensated through the provision of subsidies. _(ANT)

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