Indonesia defends digital tax policy despite US scrutiny


Indonesian Finance Minister Sri Mulyani Indrawati. - AFP

JAKARTA (The Jakarta Post/ANN): The Indonesian government will press ahead with collecting digital tax despite a recent announcement by the United States Trade Representatives (USTR) to investigate such a policy, which the US said was aimed squarely at its technology giants.

Finance Minister Sri Mulyani Indrawati said Tuesday (June 16) the government was only requiring internet companies to pay value-added tax (VAT) on sales of digital products and services starting July 1, adding that the companies would only have to act as “tax collector” as consumers would have to pay for the taxes.

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