Implementation of Value Added Tax Policy on Pharmaceutical in Indonesia

Putranti, Titi Muswati and Rafli, Amri, (2020) Implementation of Value Added Tax Policy on Pharmaceutical in Indonesia. In: ICAS-PGS 2019, October 30-31, 2019, Universitas Indonesia, Depok. Indonesia.

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Abstract

This study aims to analyze the differences in treatment of value-added tax (VAT) on the delivery of pharmaceutical preparations from a pharmaceutical wholesaler (Pedagang Besar Farmasi/PBF) to private and government hospital pharmacy installation (Instalasi Farmasi Rumah Sakit/IFRS) with using post-positivist approach. Qualitative data collection will be analyzed with quantitative technical analysis. The VAT policy on the delivery of pharmaceutical preparations has two VAT collection techniques, a self-assessment system and withholding tax system. The results of this research show that a withholding tax system is a form of deviation from the normal mechanism. However, the government realized that the withholding tax system needed to be done given the low level of taxable entrepreneur (Pengusaha Kena Pajak/PKP) compliance. Administratively, the withholding tax system that applied to the delivery of pharmaceutical preparations also results in inefficiencies in both the PBF business and government revenue.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: tax policy value added tax neutrality efficiency pharmaceutical
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 06 May 2021 09:46
Last Modified: 06 May 2021 09:46
URI: https://eprints.eudl.eu/id/eprint/3027

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