E-Commerce to Include Tax Label on Imported Products

The government will issue another regulation related to online business not long after issuing the tax regulation for digital companies. The Finance Ministry will impose online shops to label imported products with the tax or import duty payment information.

According to the Finance Ministry’s Customs and Excise Director General, Heru Pambudi, online shops or e-commerce companies tend not to label or include any proof of tax and import duty payment on the products they sell. Such practice raised presumptions that many imported products entered the market without paying any tax or excise. The state had potentially lost a significant amount of revenue because of it, which was unfortunate since e-commerce companies had been distributing a huge number of various imported goods.