Indonesia’s Cryptocurrency Tax Revenue Plummets by 62% in 2023 Despite Bitcoin Surge
Indonesia has experienced a significant 62% decrease in its cryptocurrency tax revenue for the year 2023, even as the value of Bitcoin soared. Throughout the year, cryptocurrency transactions only generated a total tax revenue of $31.7 million, a sharp decline from previous years. The main reason behind this drop is a 51% reduction in the overall volume of cryptocurrency transactions in the country.
In May 2022, the Indonesian government introduced a dual tax system for cryptocurrency transactions, imposing a combined tax rate of 0.11% (0.1% income tax and value-added tax). Additionally, local exchanges were required to contribute around 0.04% to the national cryptocurrency exchange.
The Commodity Futures Trading Supervisory Agency (Bappebti), under the leadership of Sri Mulyani, has been in talks with the Ministry of Finance to evaluate the effectiveness of the current cryptocurrency tax system. Tirta Karma Senjaya, the head of the Market Development and Development Bureau at CoFTRA, stressed the importance of regular tax assessments due to the ever-changing nature of cryptocurrencies.
At a recent event marking the tenth anniversary of Indodax in Jakarta, stakeholders highlighted the need for a reassessment of the taxation system. They emphasized the necessity of routine tax evaluations to streamline the taxation process and ensure compliance with regulations.
In January, Suryo Utomo, the Director General of Taxes at the Indonesian Ministry of Finance, revealed that a total of IDR 71.7 billion was collected through fintech services and crypto taxation. Of this amount, crypto taxes contributed IDR 39.13 billion, while fintech taxes brought in IDR 32.59 billion. The overall state revenue from crypto and fintech taxation in 2023 reached IDR 1.11 trillion.
Local exchanges have raised concerns about the impact of increased taxation on their revenues. To foster growth and stability in the Indonesian cryptocurrency sector, they suggest limiting crypto taxation to income tax. The use of crypto tax calculators can help taxpayers accurately determine their liabilities and ensure compliance with the law.
As Indonesia grapples with the challenges of regulating cryptocurrencies, stakeholders are calling for a more balanced and efficient tax system to support the industry’s growth and development.
Source: https://www.cryptonewsz.com/indonesia-sees-62-percent-fall-in-cryptocurrency-tax-revenue/
