TEMPO.CO, Jakarta - The House of Representatives (DPR) finance commission legislator Indah Kurnia announced on Wednesday that the government is eyeing to gain Rp 10 trillion in digital taxes imposed on multiple digital platforms that the government expects could be worth Rp100 trillion.
“The government has set the tariff at 10 percent,” said Indah on Wednesday, June 20.
Indah Kurnia believes that there are a number of digital transactions with untapped potential across multiple categories such as the software segment, social media platforms, broadcasting permits, mobile applications, film sales, up to gym services, and music.
The Indonesian Democratic Party of Struggle (PDIP) politician was frank about the driving factor behind the tax scheme and maintains that the government needs to cover the costs of handling the COVID-19 pandemic, which Indah Kurnia said has created deficits up to Rp1.39 trillion.
“But the government must be extra cautious when the policy gets enforced in July,” said the House legislator.
Previously reported, the Finance Ministry’s director-general of taxation Suryo Utomo assures that the policy will be effective starting next month and that digital platforms will be the party that collects, records, and reports value-added tax.