Analysis of Value Added Tax Facility Policy for Procurement of Railway Based on Ease of Administration Concept

Cause of congestion is the number of vehicles passing on limited roads. There are various kinds of negative impacts of congestion, including the loss of time, energy, health, economy, and so on. Free traffic jams such as trains are a solution to traffic congestion, especially in the Greater Jakarta area. The party building the railroad infrastructure is not only done by the government, but can also be done by the private sector. The government has established regulations that help ease the burden on contractors, namely regulations on the provision of Value Added Tax (VAT)-Not-Collected for the import of railroad infrastructure. But in practice the regulation is not easy to implement, because it is complicated and seems to deviate from the initial spirit. This study uses a qualitative method with in-depth interviews with relevant informants. The results of the research show that the policy on providing VAT-Not-Collected Facilities in the import of railway infrastructure not in accordance with certainty and simplicity concept. Because of the difficulty in submitting VAT-Free Certificate, the contractor must bear VAT, without any special treatment. This will increase the contractor’s basic costs and also add taxation costs for the contractor and the government.