Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has reportedly urged the Ministry of Finance to reassess its stance on cryptocurrency taxation. Executive staff members at Bappebti have requested a review of the government-imposed value-added tax (VAT) of 0.11% on each crypto transaction, as well as the 0.1% income tax on cryptocurrency.
Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti, emphasized that cryptocurrency is poised to become an integral part of Indonesia’s economy in the near future. As such, there is a need to evaluate existing tax policies, similar to other tax laws, to ensure they align with evolving market dynamics.
According to a recent local report, government revenue from cryptocurrency taxes in Indonesia totaled approximately $2.49 million in January. The report highlighted that in January 2024 alone, revenue from cryptocurrency taxes reached Rp39.13 billion.
Despite these taxes being in effect for nearly two years, Senjaya emphasized the importance of conducting regular evaluations to assess their efficacy and relevance.
In April 2022, Indonesia introduced a 0.1% capital gains tax on crypto investments, along with a 0.11% VAT tax. This move was made as cryptocurrency was classified as a commodity by the Trade Ministry rather than a currency.
In other news, Gibran Rakabuming Raka, the vice presidential candidate running alongside presidential candidate Prabowo Subianto, emerged victorious in the presidential election with approximately 58% of the vote. Gibran has expressed intentions to focus on providing opportunities in the crypto and blockchain space for Indonesia’s younger population.
Meanwhile, the number of crypto holders in Indonesia has surged by over 11%, increasing from 11.2 million in 2021 to 12.4 million in 2023, indicating a growing interest and adoption of cryptocurrencies in the country.
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