Communication Minister Defends Print Media
Wednesday, 25 April, 2007 | 17:16 WIB

Tempo Interactive, Jakarta: Sofyan Djalil, the Communication and Information Minister, has promised to fight for the annulment of the Tax Directorate General Regulation on Other Services and Net Revenue Assumptions.

This regulation compels the mass media to pay income tax.

“I ask for input from newspaper publishers as the basis for tax exemption for print media,” said Sofyan at the Information and Communication Department building, Jakarta, yesterday (24/4).

He asked the Newspaper Publishers Union to submit the data and analysis on the newspaper industry and for this to be handed to the Finance Minister.

Earlier, the Newspaper Publishers Union rejected that print media pay income tax, as stated in the Tax Directorate General Regulation No. PER-70/PJ/2007 on Other Services and Net Revenue Assumptions.

The reason for this is that these tax impositions would greatly burden the media industry’s financial condition.

In Attachment II of the Tax Directorate General Regulation, it is stated that media including services are imposed by 15 percent income tax of their net revenue.

Media industry members, under the regulation, are assumed to be certain of acquiring 10 percent of net revenues.

In reality, this is not the case because there are still other costs that media industry bears in production.

Asmono Wikan, Director Executive of the Newspaper Publishers Union, promised to send the data and analysis on the newspaper production condition as asked by Sofyan.

His institution will also meet the Tax Directorate General this Friday to convey the objection letter on tax imposition for media.

Eko Nopiansyah
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