Tax office moves ahead with new plan<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
In relation to plans to raise income tax on stock
\ntransactions, the Directorate General of Taxation will soon meet
\nwith related institutions, including business associations, to
\nhear views on the issue.<\/p>\n
Hadi Purnomo, the tax office head, said on Monday the meeting
\nwas necessary so as not to create unnecessary impact, such as
\nheavy shocks to the rising industry.<\/p>\n
\"We will talk with relevant parties -- including investors,
\nindustry players and the Capital Market Supervisory Agency
\n(Bapepam),\" Hadi said, adding the planned rise of tax income for
\nstock dealings to 0.2 percent was, therefore, not as yet final.<\/p>\n
\"The plan is still in the early stage of discussion, so we
\nneed that meeting to accommodate their views, which would serve
\nall interests.\"<\/p>\n
Hadi added, the 0.2 percent figure was just one among figures
\nthe tax office was considering. At present, a government
\nregulation stipulates that share transactions are subject to 0.1
\npercent tax income.<\/p>\n
While the regulation has stood for more than 10 years, the tax
\noffice felt the need to come up with the hike plan to better
\nreflect the current conditions, Hadi added.<\/p>\n
However, the plan has so far met with criticism, mostly from
\nindustry players who say that it creates negative sentiment. It
\nis also seen as detrimental to efforts to boost the performance
\nof the country's stock market.<\/p>\n
\"That's why we're planning to meet them, it's that kind of
\nimpact that we are trying to avoid,\" said Hadi, who has been
\nquite active in introducing various policies that could boost tax
\nrevenue -- the largest contributor to the state budget.<\/p>\n
This year, the office has targeted to raise some Rp 260.2
\ntrillion worth of tax revenue, which would account for 13 percent
\nof the gross domestic product (GDP).<\/p>\n
Among policies being planned by the tax office is the tax on
\nmutual fund transactions, which has been booming here for the
\npast few years.<\/p>\n
Hadi refused to provide a clear timetable as to when the new
\npolicy would to come into effect, but said it was likely to
\nhappen in the near future as his office needed only a government
\nregulation to put it into effect.<\/p>\n
\"The meeting will be held as soon as possible, so that we can
\nmove fast. But, it should not take too long as it only needs a
\ngovernment regulation to be effective,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tax-office-moves-ahead-with-new-plan-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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