Aftech hopes digital economy tax implemented transparently

Aftech hopes digital economy tax implemented transparently

Illustration for Fintech (Shutterstock)

We expect that all policies related to digital economy tax proposed by the government can be made transparent and after consultations with the private sector
Jakarta (ANTARA) - Indonesian Fintech Association (Aftech) expressed the hope that the digital economic tax plan proposed by the government can be made in a consultative way and transparently.

"We expect that all policies related to digital economy tax proposed by the government can be made transparent and after consultations with the private sector," Aftech Daily Chair, Mercy Simorangkir said to ANTARA here Tuesday.

By consulting with the private sector in advance, the plan to implement the policy of digital economy tax would not hinder the growth of the digital economy in the country, Simorangkir argued.

"Therefore, the effort to impose taxes on digital businesses will not be a barrier to the growth of the digital economy in Indonesia," he remarked.

Nevertheless, Aftech will support the government's plan, he stated.

"The Indonesian Fintech Association strongly supports the government's efforts to formalize business models and innovations that have emerged in the digital economy," he added.

Earlier, Minister of Finance Sri Mulyani called for a plan to collect taxes from digital economic activities which had not been optimally done to increase state revenues.

This effort must be conducted because every economic activity in Indonesia must be taxed in accordance with the applicable laws and regulations, Sri Mulyani stressed.

The imposition of income tax rates from each the digital economic transaction will remain the same as conventional buying and selling activities, she assured.

The difference is on the tax collection procedure because not all of the Permanent Business Entity (BUT) involved in digital economic activities have representatives in Indonesia.

One approach to the tax collection sought is taxation obligations based on the number of economic transactions or the volume of economic activity obtained in one country.

This tax collection plan can be done in a transparent manner from sales information, advertisements, and other data, as well as being able to be integrated.

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