No VAT hike, please<\/p>\n
From Bisnis Indonesia<\/p>\n
The government will shortly raise the price of fuel by 30
\npercent, the basic charge for electricity by 20 percent and Value
\nAdded Tax (VAT) by 2.5 percent. In my opinion, this decision is
\nhighly unrealistic and will be very difficult for most of the
\ncommunity to accept, especially in view of the hardship caused by
\nthe protracted economic crisis.<\/p>\n
The planned hike in the VAT rate from 10 percent to 12.5
\npercent will place an undue burden on the community. The impact
\nof this rise will be felt not by businessmen\/companies but by the
\nend consumers. Businessmen\/companies will only collect the VAT;
\nthey never pay this tax.<\/p>\n
In this case, does the government realize that this hike in
\nthe VAT rate will trigger price hikes and then, of course, a rise
\nin the inflation rate. In the final analysis, it is the ordinary
\npeople that will have to bear the brunt of these increases.<\/p>\n
The Director General of Taxation has said that the 2.5 percent
\nhike in VAT will contribute Rp 4.2 trillion in VAT receipts. In
\nmy opinion, this is not so important as the budget deficit for
\n2001, set at Rp 87 trillion, is already too big. Is there not
\nanother alternative that won't result in even greater misery for
\nthe ordinary man in the street?<\/p>\n
A better way for the government to raise tax receipts would be
\nto broaden the tax base and to intensify tax collection.<\/p>\n
The government could, among other things, net more individual
\ntaxpayers and those making false or inaccurate returns, or
\neradicate corruption, collusion and nepotism from tax offices
\n(collusion between taxpayers and tax collectors).<\/p>\n
Or, the government could raise the rate of Luxury Sales Tax
\nas, obviously, those who pay this tax are the wealthy.<\/p>\n
In general, the government could also raise the state's
\nrevenues by improving efficiency in important state enterprises
\nlike Pertamina, PLN, Telkom, eradicating fuel smuggling abroad
\nand eliminating power theft.<\/p>\n
EDDY<\/p>\n
Purwakarta, West Java<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/no-vat-hike-please-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }