Legal Literacy - On Monday, July 14, 2025, the Minister of Finance Sri Mulyani officially enacted PMK Number 37 of 2025. This regulation governs the appointment of other parties as tax collectors, as well as the procedures for collecting, depositing, and reporting taxes on the income of domestic traders who transact through electronic systems. This rule requires platforms e-commerce such as Shopee, Tokopedia, and the like to collect Income Tax (PPh) Article 22 of 0.5 percent of the annual gross turnover of domestic traders who have a turnover of more than Rp500 million to Rp4.8 billion. This policy has sparked controversy: on the one hand, it is considered a step to expand the digital tax base, but on the other hand, its effectiveness and partiality towards MSME players who are still economically vulnerable are questioned.The government claims that the issuance of this PMK aims to facilitate public participation in development through tax contributions. In its consideration, this policy was drawn up to fulfill the principles of legal certainty, fairness, ease, and simplicity of administration, while increasing the efficiency and effectiveness of tax collection in the digital economy era. The legal umbrella for this policy refers to Article 44E paragraph (2) letter f of Law Number 6 of 1983 concerning General Provisions and Tax Procedures, which was last amended through Law Number 6 of 2023 concerning the Stipulation of the Job Creation Perppu into Law. On this basis, the platform e-commerce is designated as another party authorized to collect, deposit, and report income tax from domestic traders.Although the government stipulates that small traders with a turnover of under Rp500 million are exempt from tax collection, the reality on the ground is far more complex. Based on Article 6 of PMK 37/2025, to obtain this exemption, traders must actively submit information in the form of a Taxpayer Identification Number (NPWP) or Resident Identification Number (NIK), correspondence address (paragraph 1), and a statement that their turnover has not exceeded Rp500 million (paragraph 2), to the platform where they sell. Even if their turnover skyrockets, traders are also required to submit an additional statement no later than the end of the month when the limit is exceeded (paragraphs 6 and 7). This administrative burden is fully borne by the traders, including the obligation to update the statement every beginning of the year (paragraph 5). For many MSME players who do not have adequate tax literacy, this mechanism actually opens up the potential for deductions that should not occur simply due to administrative negligence.