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Jakarta Post

Govt's import tax plan faces backlash from merchants and buyers

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Fri, December 27, 2019   /  05:15 pm
The Jakarta Post Image
An employee of Lazada fills an order at the online marketplace's warehouse in Cakung, East Jakarta, in this file photo.(Kompas/Hendra A. Setyawan)

The government's plan to lower the tax threshold for e-commerce retail imports is facing a backlash, with merchants worried that the new policy will cause a sharp decline in sales. Mustika Rahma, a 23-year-old e-commerce merchant that retails on Instagram and several online marketplaces, told The Jakarta Post on Thursday that the new policy would discourage buyers from purchasing imported goods because they would have to pay a higher import tax. "We feel threatened by this regulation because sales will go down as prices skyrocket," said Mustika, who sells 100 percent imported fashion items and accessories. She added that her online store had recorded a spike in sales following the government's announcement: "I think customers are taking advantage of the opportunity before prices go up." ...