IPB University Economics Expert Outlines the Impact of Tax Implementation on E-commerce MSMEs in Indonesia
The rapid growth of the e-commerce sector in Indonesia, especially after the COVID-19 pandemic, has prompted the government to impose a digital tax policy as a form of supervision and expansion of the state revenue base.
However, according to IPB University Economics Expert, Dr Anisa Dwi Utami, this policy can have various economic and social impacts. Things that need to be examined in depth include fiscal justice; the readiness of micro, small and medium enterprises (MSMEs); and the potential for community resistance if not accompanied by adequate education and system support.
From an economic perspective, he explained, the application of taxes such as Value Added Tax (VAT) and Income Tax (PPh) to e-commerce players is considered an important step towards fiscal justice and expansion of the tax base.
“Before this policy took effect, there was an imbalance between offline business actors who paid taxes regularly and e-commerce actors who had not been optimally touched by tax obligations,” said the lecturer at the Faculty of Economics and Management (FEM) IPB University.
This imbalance, she continued, is not only detrimental to the state in terms of revenue, but also creates unfair business competition. By imposing taxes on this sector, it is expected to create equal fiscal treatment and increase state revenue without the need to raise tax rates across the board.
However, Dr Anisa also highlighted the challenges in implementing this policy. One of them is the complexity of the tax system that can be an additional burden, especially for MSMEs that dominate the e-commerce sector. Lack of administrative capacity and low tax literacy are the main obstacles.
“The process of recording transactions, calculating taxes, and reporting can be burdensome for MSME players if there is no system that supports tax digitalization or technical assistance,” she said.
Tax imposition also has the potential to affect the selling price of goods or services. If the tax burden is borne by consumers, the price of goods may increase and reduce competitiveness. Conversely, if traders bear the tax themselves, their profit margins will shrink.
From a social perspective, Dr Anisa said, this policy has the potential to cause resistance, especially if it is considered burdensome or implemented without adequate socialization. “Many digital entrepreneurs are individuals who are just starting a business or surviving amidst economic pressures. They can feel unfairly treated,” she said.
However, she continued, if the implementation is fair, transparent, and accompanied by administrative convenience and incentives, the impact can be positive. People will be more aware of the importance of taxes as a form of contribution to national development.
Furthermore, Dr Anisa said that the professionalization of digital MSMEs can occur through tax obligations. Clearer business legality and a neat bookkeeping system will facilitate access to financing, training programs, and increased competitiveness.
For this reason, she recommends three main strategies. First, massive education on taxation to MSMEs through various channels. Second, the provision of an easy digital system integrated with e-commerce platforms for tax reporting and payment. Third, providing tax incentives for new and small businesses to encourage participation without increasing the burden.
“Taxes should not be an obstacle to the growth of the digital economy, but a means of building a healthy, inclusive, and sustainable digital ecosystem,” she said. (dr) (IAAS/NRA)
