Hey folks.
Despite an increase in the value of Bitcoin, a noticeable downturn in crypto tax revenue witnessed by Indonesia in the year 2023 which has plunged by 62% compared to the previous year.
In 2023, the tax revenue collected from crypto transactions were $31.7 million which equals to 467.27 billion Indonesian Rupiah.
The decline was attributed primarily to to a substantial decrease in crypto transactions volume during the same period.
The government implemented a tax scheme in May 2022 that levied two taxes on cryptocurrency transactions: a 0.1% income tax and a 0.11% value-added tax (VAT). Local exchanges made up approximately 0.04% of the national cryptocurrency exchange.
The Director General of taxes, at Indonesia's Ministry of Finance, Suryo Utomo in January reported a total collection of 71.7 billion Indonesian Rupiah from crypto tax and Fintech services business. According to him, 39.13 billion Indonesian Rupiah came from crypto tax while taxes worth 32.59 billion Indonesian Rupiah came from Fintech taxes.
State revenue from fintech and cryptocurrency taxes over the previous year was IDR 1.11 trillion.
Concerns were voiced by the local exchanges in the country regarding the high taxes pointing to them as the cause of declining revenue as people look into other platforms.
In order to promote stability and growth in the country's crypto industry, proposals have been made to subject crypto transactions solely to income tax.
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