Research Article
Implementation of Value Added Tax Policy on Pharmaceutical in Indonesia
@INPROCEEDINGS{10.4108/eai.30-10-2019.2299412, author={Titi Muswati Putranti and Amri, Rafli}, title={Implementation of Value Added Tax Policy on Pharmaceutical in Indonesia}, proceedings={Proceedings of the 3rd International Conference on Administrative Science, Policy, and Governance Studies, ICAS-PGS 2019, October 30-31, Universitas Indonesia, Depok. Indonesia}, publisher={EAI}, proceedings_a={ICAS-PGS}, year={2020}, month={8}, keywords={tax policy value added tax neutrality efficiency pharmaceutical}, doi={10.4108/eai.30-10-2019.2299412} }- Titi Muswati Putranti
Amri, Rafli
Year: 2020
Implementation of Value Added Tax Policy on Pharmaceutical in Indonesia
ICAS-PGS
EAI
DOI: 10.4108/eai.30-10-2019.2299412
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.
