Sri Mulyani: Tax of Digital Products Similar to Conventional

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  • TEMPO.CO, JakartaFinance Minister Sri Mulyani ensured that tax duties for imported digital products such as film streaming, music, applications, online service, and games will be the same as that of conventional products. The services will be subjected to value-added tax (VAT).

    “The implementation of VAT for imported digital products is expected to generate a level playing field among businesses,” the minister said in a plenary meeting of the House of Representatives (DPR) in Jakarta, Thursday, June 18.

    She asserted that the tax would not only apply to foreign companies, but also domestic ones. This tax collection is stipulated in the Finance Ministerial Regulation No. 48/PKM.03/2020 that will take effect starting July 1, 2020.

    According to Minister Sri, the tax was one of the government's efforts to increase state tax revenue. Previously, the government planned to add new taxable objects of electronic sales.

    “The government is striving to boost tax revenue by expanding the tax basis by adding new taxable objects,” Sri Mulyani explained.

    The addition of taxable objects was noted in the regulation in lieu of law (Perpu) No. 1/2020 that had been passed into Law No. 2/2020. With this policy, the government initiated tax on sales of digital products and services.

    Read: Govt Imposes New Tax on Digital Services Such as Netflix, Spotify

    FRANCISCA CHRISTY ROSANA