E3S Web Conf.
Volume 74, 2018International Conference Series on Life Cycle Assessment: Life Cycle Assessment as A Metric to Achieve Sustainable Development Goals (ICSoLCA 2018)
|Number of page(s)||6|
|Section||Water Footprint and Conservation|
|Published online||12 December 2018|
Rethinking value added tax on drinking water supply system: evidence based policy from Indonesia
Department of Tax Administration Science, Faculty of Administrative Science, Universitas Indonesia, Indonesia
2 Research Cluster of Political Taxation, Welfare, and National Resilience (PolTax), Faculty of Administrative Science, Universitas Indonesia, Indonesia
* Corresponding author: email@example.com
Value Added Tax (VAT) for Drinking Water Supply System (DWSS) in Indonesia has not been formulated impartially, holistically and comprehensively by involving related institutions/ ministries. There are disputes that causes a high cost of taxation that discourages the achievement of Millennium Development Goals target. It is notably significant to put the VAT policy on DWSS in the paradigm of national interests and fulfillment of human rights. This study used the paradigm of constructivism with data collection technique through in-depth interviews and Focused Group Discussion (FGD). An evidence based policy was adopted to conduct a better outcome of the study to promote amendment of related VAT regulations. The results of the study indicate an inconsistency between VAT policy and Government Regulations, both Minister of Health Regulations and other Ministries Regulations on Drinking Water Supply System. The impact of the inconsistency was the tax dispute that ultimately causes a high cost of taxation on both sides as well as VAT treatment inconsistency within the drinking water providers (PDAMs) themselves. A practical implication of this study generates the enactment of Government Regulation Number 40/2015 as an amendment of prior regulation concerning VAT exemption on DWSS.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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