The Ministry Of Finance's DGT Has Spoken Out About The Release Of Milk Import Taxes

JAKARTA - The Directorate General of Taxes at the Ministry of Finance (DJP Kemenkeu) has opened its voice regarding the exemption of taxes on imports of certain dairy products.

This is in line with the large number of domestic milk imports from a number of countries such as Australia and New Zealand.

Meanwhile, the milk import tax policy is regulated in Government Regulation Number 49 of 2022 concerning Value Added Taxes Freed and Value Added Taxes or Value Added Tax and Sales Tax on Luxury Goods Not Charged for Imports and/or Submission of Certain Taxable Goods and/or Submission of Certain Taxable Services and/or Utilization of Certain Taxable Services from outside the Customs Region.

Furthermore, the rules regarding the exemption of VAT on certain dairy products are regulated in the provisions of Article 7 paragraph (2) letter (i) PP 49 of 2022 concerning Freed VAT and VAT or PPnBM Not Collected for Imports and/or Submission of Certain Taxable Goods and/or Certain Taxable Services and/or Utilization of Taxable Services from Outside the Customs Region stated that milk is included in the category of goods needed by the people which are for imports and/or delivery is exempt from the imposition of VAT.

"This provision stipulates that the milk is a milk that meets dairy milk criteria, both those that have gone through the process of being cooled or heated (pasteurized) and does not contain additional sugar or other ingredients," said Director of Counseling, Services, and Public Relations Dwi Astuti in her statement, quoted Monday, November 18.

Thus, Dwi said, as long as they meet these criteria, domestic imports and/or sales of milk are exempt from the imposition of VAT.

Previously, the Director General of Customs and Excise at the Ministry of Finance (Kemenkeu) Askolani opened his voice regarding the exemption from import duties for cow's milk into the country from a number of countries such as Australia and New Zealand.

Askolani explained that the policy of removing import duties was due to the impact of trade agreements between Australia and New Zealand and Indonesia.

As is known, Indonesia and ASEAN countries have agreed to sign the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA).

Therefore, Askolani confirmed the release of free trade facilities between certain countries that had agreed to the agreement.

"It's related to the FTA (Free Trade Agreement) agreement, yes, between usually with ASEAN, with Australia, with New Zealand, so that's what we do too," said Askolani at the head office of the Directorate General of Customs and Excise, Thursday, November 14.

However, Askolani conveyed that regarding the provisions of the 0 percent import duty for milk, it was necessary to review this, it was necessary to coordinate with the Directorate General of Taxes at the Ministry of Finance.

"Later, friends from taxes," he said.