Indonesia’s Finance Ministry Urged to Reevaluate Cryptocurrency Tax Policy Amid Surging Revenues
Bollywoodfever, March 4: The Indonesian Finance Ministry has received a request from the Commodity Futures Trading Supervisory Agency (CFTSA) to reevaluate the current cryptocurrency tax regulations.
This call for reassessment is driven by the notable increase in revenue from cryptocurrency transactions, which now exceeds earnings from the fintech sector.
Recent data highlighted by Bisnis.com reveals that Indonesia’s revenue from the crypto industry significantly outstripped that from fintech companies.
In a striking comparison, the country amassed approximately $2.5 million (IDR39.13 billion) from crypto-related activities, surpassing the $2.03 million generated by fintech operations.
Throughout 2023, the crypto transactions contributed $41.2 million to the national revenue, compared to nearly $28 million from fintech activities.
Since May 2022, Indonesia has applied a value-added tax (VAT) of 0.11% on cryptocurrency transactions executed through registered exchanges, alongside an income tax on profits from crypto asset trades.
Tirta Karma Senjaya, who leads the Market Development and Development Bureau at CFTSA, has been vocal about the necessity of this tax policy review.
Senjaya stated, “Because crypto will become a financial sector, we hope that there will be a commitment from the Director General of Taxes to evaluate this tax. The evaluation is crucial as this regulation has been in place for over a year, and taxes are typically reviewed annually.”
He further suggested that the cryptocurrency industry stakeholders should be allowed ample time to develop before being encumbered with tax obligations, indicating a potential reconsideration of the tax framework to foster the growth of this burgeoning sector.
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