Monday, 17 June 2019 | 11:34 WIB

ideA: E-Commerce Tax Will Kill Commerce Climate

Illustration of online hotel booking.

JAKARTA, NETRALNEWS.COM - The government's plan to apply taxes on e-commerce businesses will kill entrepreneurs or business pioneers on the internet platform.

This sentiment was expressed by the Indonesian E-commerce Association (ideA) in criticizing the plan of Minister of Finance Sri Mulyani Indrawati to apply taxes on e-commerce businesses.

Chairman of IdeA Aulia Ersyah Marinto said IdeA appreciates the steps that the Directorate General of Taxation plan to take in terms of e-commerce taxes.

However, IdeA also criticized the plan to collect taxes from sellers in marketplaces or online platforms such as Tokopedia, Bukalapak, and so on.

Aulia explained IdeA criticism by saying that if someone conduct sales in the marketplace, the data and transactions information will be completely recorded. However, with taxes being applied businesses will likely switch to social media because e-commerce taxes does not apply in social media. Slowly, the marketplace will be abandoned by users, and thus, affect the commerce climate.