Tax DG: Online Sellers' Tax Won't Lead to Increased Product Prices

TEMPO.CO, Jakarta - Director General of Taxation at the Finance Ministry, Bimo Wijayanto, asserted that designating marketplaces as tax collectors for online traders will not lead to increased product prices. He emphasized that the tax collected by e-commerce is not a new levy; rather, it is the existing Income Tax (PPh 22) that sellers have always been obligated to pay.

"This is not a new tax, it will not raise prices," Bimo told reporters at the Parliament Complex in Jakarta on Tuesday, July 15, 2025.

Bimo explained that before marketplaces were appointed as tax collectors, traders were responsible for reporting their taxes independently. He believed this new regulation would simplify the process for traders and create a level playing field between online and offline merchants.

He further claimed that the regulation, stipulated in the Finance Ministerial Regulation No. 37 of 2025, is fair and not intended to drive up the prices of e-commerce products.

The Income Tax (PPh 22) collection rate is 0.5 percent of the gross turnover received or obtained by traders. This tax will only be collected from sellers with a turnover exceeding Rp500 million.

The Finance Ministerial Regulation 37/2025 explicitly grants the minister the authority to appoint other parties, such as marketplaces, as collectors of the income tax. These appointed parties are responsible for collecting, depositing, and reporting taxes on income generated by domestic traders through the Electronic Trading System mechanism.

Previously, Head of Macroeconomics and Finance at the Institute for Development of Economics and Finance, M. Rizal Taufikurahman, expressed concerns about the potential for liquidity pressure on Micro, Small, and Medium Enterprises (MSMEs) if this regulation is enforced.

"The upfront deduction of income tax can cause liquidity pressure, especially for MSMEs whose profit margin is very limited," Rizal told Tempo on Saturday, June 28, 2025.

Editor's Choice: Government Eyes Social Media for Tax Revenue After Marketplaces

Click here to get the latest news updates from Tempo on Google News

Government Eyes Social Media for Tax Revenue After Marketplaces

1 jam lalu

TikTok Indonesia: 63% of Monetized Creators Earn Above Minimum Wage

3 jam lalu

Today's Top 3 News: Indonesia Seeks Lower Tariffs Than Vietnam in Ongoing U.S. Negotiations

10 hari lalu

One Big Beautiful Bill: Inside Trump's Latest Tax and Spending Proposal

12 hari lalu

U.S. Senate Passes Trump's $3.3 Trillion Tax Cut and Spending Bill After Tie-Break Vote

13 hari lalu

Jakarta Imposes 10% Tax on Padel Court Rentals

13 hari lalu

E-commerce Association: New Tax Rules Could Impact Millions of Sellers

15 hari lalu

Norway to Impose Tourist Tax on Cruise Ship Passengers Starting in 2026

16 hari lalu

Finance Ministry Speaks on PPh 22 Tax Plan for E-commerce Traders

17 hari lalu

Tax DG: E-Commerce Tax Collection Will Curb Shadow Economy

19 hari lalu