Retailers decry ‘unfair’ tax advantage for e-commerce
Retailers have criticized the government’s decision to delay the implementation of marketplace tax collection for online sellers, saying it prolongs an uneven playing field disadvantaging bricks-and-mortar businesses already contending with softer consumer spending and rising costs.
Retailers are voicing discontent over the Indonesian government's decision to postpone the implementation of marketplace tax collection for online sellers. They argue that this decision extends an already unfair advantage to e-commerce platforms over traditional brick-and-mortar businesses, which face challenges such as lower consumer spending and increasing costs.
The Indonesian Retailers and Shopping Centers Association (Hippindo) expressed disappointment in the postponement, stating that it is unfair to retailers, who are responsible for collecting and remitting taxes on both their physical and online sales. Hippindo's chairman, Budihardjo Iduansjah, emphasized that the goal is not to burden online sellers but to ensure all businesses adhere to the same taxation framework.
He reiterated the need for equal fiscal obligations to promote fair competition between online and offline businesses. This latest postponement occurs as bricks-and-mortar retailers grapple with rising expenses while consumers spend less due to economic concerns while visiting malls.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
