Saturday, 7 December 2019

Sri Mulyani Deems High Tech May Boost Tax Revenue

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati refuses to consider advanced technology as a threat to the economy, but it rather provides opportunities for tax revenue, especially in the informal sector such as digital entrepreneurship.

    “As a Finance Minister, [high tech] must be seen as an advantage,” said Sri as a speaker in the 2019 Centre for Strategic and International Studies (CSIS) Global Dialogue in Jakarta, Tuesday, September 17. 

    According to her, economic values can be obtained from the informal sector, including individual entrepreneurs who run their business by depending on modern technologies.

    By benefitting from technologies, business people can promote their products through social media, such as Instagram and Facebook, for free.

    The former managing director of the World Bank said that the informal sector is commonly believed as a small part outside the system.

    However, along with technological sophistication, the sector has the potential to grow exponentially as the operational cost is considerably low.

    Sri Mulyani further claims that she has a system to detect the state revenue from the digital tax.

    Other than giant digital firms, the opportunity of tax revenue could also be enhanced from application-based trade firms or e-commerce that are now emerging massively in the archipelago.

    ANTARA