Saturday, 14 December 2019

Jokowi to Optimize Tax Revenue from E-Commerce in 2020

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Markus Wisnu Murti

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  • President Joko Widodo or Jokowi poses at the joint meeting of the Regional Representatives Council (DPD) and the House of Representatives (DPR) held at the Parliament Complex in Senayan, Jakarta, Friday, August 16, 2019. REUTERS

    President Joko Widodo or Jokowi poses at the joint meeting of the Regional Representatives Council (DPD) and the House of Representatives (DPR) held at the Parliament Complex in Senayan, Jakarta, Friday, August 16, 2019. REUTERS

    TEMPO.CO, JakartaPresident Joko Widodo or Jokowi has pegged a target of the state income in 2020 at Rp2,221.5 trillion. To achieve the goal, the government will optimize the income from the tax sector and the non-tax sector or PNBP, he said.

    In the tax sector, the government will resume the tax reform, such as improving administration and compliance as well as strengthening the taxation database and information system.

    “The government will also impose a policy on the equal level of playing fields between conventional and e-commerce businesses to optimize the tax revenue in this digital era,” he said at the MPR-DPR Complex, Jakarta, Friday, August 16.

    Meanwhile, he continued, the reformation of PNBP would be implemented by strengthening the regulation and management while maintaining the quality of public services.

    In order to support the improvement of competition and investment, the government will also grant tax incentives through several instruments, namely expanded tax holiday, changes in tax allowances, investment allowance, the super deduction for the development of vocational, R&D, and labor-intensive industries.

    As for the labor-intensive industries, the incentives will include free import duty and tax subsidies.

    Furthermore, Jokowi mentioned that the state expenditure in 2020 would be Rp2,528.8 trillion, or equal to 14.5 percent of the Gross Domestic Product (GDP). “The state expenditure will be used to improve the quality of human resources and resume the social protection program to deal with demographic challenges,” he said.

    MUHAMMAD HENDARTYO