REPUBLIKA.CO.ID, JAKARTA - Micro and Small Enterpreneurs Association of Indonesia (Hipmikindo) will ask government to reconsiderate or postpone taxation rules of micro and small medium enterprises (MSME).

"There are three reasons why we are objection on the taxes," Chairman of Central of Executive Board in Hipmikindo, Maz Pandjaitan said on Wednesday.

First, Panjaitan explained, MSME taxation rule was discriminatory as the business' turnover was counted as gross income. The turnover consists of cost of goods, sales and others. Most of MSME are also levied value added tax. So, recurring imposition is potentially happened.

Second, based on regulation No. 6/1983 on general provisions and procedures of taxation, MSME enterpreneurs are not included as taxpayer. So, turnover of an MSME is not called a tax object. Third, government today does not have valid data about number of MSMEs in Indonesia. Without valid data, then imposing the taxes will potentially lead to fatal errors in making prediction and important policies. Pandjaitan proposed that taxation of MSME had to use definitive data so target could be determined accurately. 

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