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View all search resultsIn formulating dozens of implementing regulations for the Job Creation Law that was enacted on Nov. 2 last year, the government welcomes feedback from the public. Franky Sibarani, who heads a team established by the Office of Coordinating Economic Minister to gather public input concerning the planned government regulations (PP) and presidential regulations (Perpres), shared with The Jakarta Post’s Marchio Irfan Gorbiano recently the progress the team had made to meet the three-month deadline mandate.
The Taxation Directorate General is in talks with several more technology firms to collect value-added tax (VAT) on sales after recently imposing such rules on six firms, including Amazon and streaming platform Netflix.
If the government imposes a wealth tax of just 2 percent on these HNWIs it could collect additional revenue of Rp 40.38 trillion, a sum more than enough to fund the Family Hope poverty alleviation program in 2020 (Rp 37.4 trillion).
Despite a very positive impact on the economy in Indonesia, the new regulation on VAT for digital products will not be effective without comprehensive efforts to improve information technology in the Directorate General of Taxes (DGT) and cooperation with other countries.
Finance Minister Sri Mulyani Indrawati said the government expected a 10 percent drop in tax revenue this year as a result of incentives for businesses to help them cope with COVID-19 and reduced non-tax revenue on account of falling commodity prices.
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