Good News For Mothers! The Following Is A List Of VAT-free Goods: Rice, Meat, Eggs, To Tax Free Salt

JAKARTA - The government through the Directorate General of Taxes (DGT) said that the increase in Value Added Tax (PPN) to 11 percent starting April 1 was followed by the provision of exemption from levies on several types of goods.

Director-General of Taxes at the Ministry of Finance, Suryo Utomo, said the incentives were intended for a large number of basic commodities that are people's daily needs.

"What is clear is that there is no VAT imposed on goods and services needed by the community as a whole", he said in a virtual discussion on Tuesday, April 5.

In his explanation, Suryo mentioned several items of goods that received facilities, namely rice, unhulled rice, corn, milk, soybeans, salt, meat, eggs, fruits, vegetables, and consumable sugar.

"Then, health services, educational services, social facilities, vaccines, books, holy books, clean water, electricity below 6,600 watts, simple houses, flats, and the like are not subject to VAT", said Suryo.

Furthermore, the implementation of the policy is still in the waiting process because the technical regulations governing this matter are currently being drafted by the government. Meanwhile, the big umbrella policy for the imposition of VAT is contained in Law number 7 of 2021 concerning the Harmonization of Tax Regulations (UU HPP).

"Although the PP (Government Regulation) does not yet exist or has not been published at this time, in the context of the list we will exclude or give incentives not to be subject to VAT at this time or be exempted", he asserted.

In the previous VOI report, one of the items that are not subject to VAT is gold bars, granules, and jewelry. This step is intended to support the increase in national gold production.

This VAT exemption indicates that the government wants to continue to encourage the manufacturing industry to continue to develop so that the downstream process in the mining sector will continue to increase.