UKM turnover of less than USD $ 2.5 Billion Proposed VAT Free

Written by Administrator
Friday, 08 October 2010
Detikfinance.com, October 8, 2010

Jakarta - Employers urged the government to free up the value added tax (VAT) for small and medium businesses (SME)or UKM with turnover up to USD 2.5 billion. The small businessman also called for fiscal incentives in the form of reduction in income tax (PPh).

Thus disclosed by the Chairman of the Indonesian Young Entrepreneurs Association (HIPMI) Erwin Aksa when met after delivering proposals to the government fiscal incentives in the Ministry of Finance Building, Jalan Wahidin, Jakarta, Friday (10/08/2010).

"We were not asked previously for SMEs (turnover) increased from USD 600 million to Rp 1.8 billion, well now increased to USD 2.5 billion. Because that's SMEs in accordance with the Law that (turnover) limits according to Rp 2 , 5 billion and in essence we want to increase that limit for exemption to VAT and income tax reduction, "said Erwin.
Insistence of employers are based on Decree of the Minister of Finance Decree. 571/KMK.03/2003 December 29, 2003 on the Limitation of Small Employers Subject to VAT. In Article 1 of Decree of the Minister of Finance that being said, the small businessman is a businessman who for 1 year to do the transfer of taxable goods and taxable services with a total gross turnover or gross receipts and not more than Rp 600 million.

"Now we have to Rp 2.5 billion," he explained.

He reveals, with a limit of up to Rp 2.5 billion, will the entrepreneurs of SMEs can be serious to be abiding taxpayers.

"We do this so that the awareness of SMEs to taxpayers could increase. amount of taxpayer awareness of SMEs are still very low because they still lack discipline," he said.

This is evident from the books that made the perpetrators of SMEs. According to Erwin, bookkeeping for small firms is likely not true.

"Even small companies have no books at all. Or run the business by using personal names," he explained.

With the proposal, expected to have increased the ability of SMEs to improve compliance, governance and accounting of the company.

"And this time the proposal HIPMI positive response by Ministry of Finance and today there are already talks of our proposals for how the existence of a thrust-bearing capacity of the SME sector," he said.

Most importantly, continued Erwin, SME business people were still able to obtain fiscal incentives. This is considering the competitiveness of SMEs have to face my weight.

"Because we know the competitiveness of SMEs is very heavy due to free market conditions, better infrastructure and indeed expected interest rates are still expensive," said Erwin.

"Well, that's why we urge government through fiscal incentives given Ministry of Finance for waivers, which provide relief for SMEs, the discussion is what we do continue with Ministry of Finance," added Erwin.