Muhaimin Supports Government To Set PPh And VAT On Crypto Money Transactions: This Can Increase State Revenue

Deputy Chairperson of the DPR and General Chairperson of the PKB Muhaimin Iskandar. (Photo: Doc. Antara)

JAKARTA - Deputy Chairman of the House of Representatives for the Coordination of People's Welfare (Korkesra) Abdul Muhaimin Iskandar supports the government's plan to impose Income Tax (PPh) and Value Added Tax (VAT) on crypto money transactions.

"Crypto and 'fintech' transactions now we know are very large. The customers are also millions of people. So, I support the regulation on the imposition of PPh and VAT for them, at the same time this can be a new source of income for the state," said Muhaimin in a written statement, quoted from Antara. , Saturday April 9th.

Gus Muhaimin as he is familiarly called, quoted a report from the Ministry of Trade (Kemendag) which stated that the transaction value of crypto assets reached Rp. 64.9 trillion in 2020 and was recorded at Rp. 859.4 trillion last year. From this data, crypto asset trading transactions for the period January to February 2022 were recorded at IDR 83.3 trillion.

"Transactions of that size and number can of course increase state tax revenues. So, it should be optimized," he said.

The general chairman of the National Awakening Party (PKB) also asked the Ministry of Finance (Kemenkeu) to review and coordinate with crypto asset transaction entrepreneurs and the Indonesian Fintech Association (AFTECH) regarding the amount of tax rates that will be imposed.

"I ask related institutions such as the Ministry of Finance and AFTECH to coordinate with each other how much the tax will be. I hope that the tax imposition will not burden crypto asset traders and fintech customers, which will result in reduced transactions and the movement of traders to foreign exchange transactions," he said.

On the other hand, he also encouraged the Ministry of Finance, the Financial Services Authority (OJK), and the Commodity Futures Trading Regulatory Agency (Bappebti) to socialize the rules for imposing PPh and VAT to companies implementing crypto asset transactions, fintech companies as well as to the public as traders and customers.

"The socialization must be massive. Do not be impressed by the government as long as it only collects taxes by entrepreneurs and traders. If it is massive, I'm sure they will also understand because this is also for the good of Indonesia, for our common good," he said.