“Hopefully, [the regulation] will be issued next week,” said Director General of Taxation Ken Dwijugiaseteadi on the sidelines of a hearing at the House of Representatives on Wednesday.

Finance Minister Sri Mulyani said her ministry would familiarize the regulation among the public soon after its issuance She said the regulation would cover many aspects, including taxes on e-commerce transactions.

Meanwhile, Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo urged the government to immediately realize tax collection from e-commerce transactions. Yustinus believed that the sector had great potential for boosting the state's tax revenues.

He also advised the government to learn from the European Union in collecting taxes from e-commerce businesses, especially in ensuring that the taxes would be based on fair principles. He also reminded the government that international transactions were also made through the online businesses.

“E-commerce is principally collected in the country where the goods are sold, and should be shared with the destination country. Therefore, there must be [international] cooperation,” Yustinus added.

Meanwhile, taxation expert Bawono Kristijadi of the Danny Darussalam Tax Center (DDTC) agreed that the government should start collecting taxes from e-commerce businesses immediately.

Kristijadi also suggested that government set up a national payment gateway to facilitate a digital tax collection service. (bbn)  

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