Minister Of Trade Guarantees 12 Percent VAT Does Not Make The Surge In Premium Rice Prices Above HET

JAKARTA - The Minister of Trade (Mendag) Budi Santoso ensured that the imposition of a value added tax (VAT) of 12 percent on premium rice would not make the price of rice soar above the highest retail price (HET).

Minister of Trade Budi's statement answered reporters' questions regarding whether 12 percent VAT could make premium rice prices soar above HET.

"No, no, no," he told reporters in Kampung Jaya, Warung Bangkok, West Cikarang, Bekasi Regency, Wednesday, December 18.

Even so, Budi also ensured that the basic needs of other people were exempt from VAT. Including rice consumed by most people.

"Yesterday there were several exceptions (VAT)," he said.

"I don't think (it will raise prices above HET), the needs of the general public are not premium (rice)," he continued.

For your information, premium rice is one of the foodstuffs that will be subject to a 12 percent value added tax (VAT) starting January 2025.

Referring to the provisions of the Ministry of Trade (Kemendag), HET premium rice which is set to spread Rp. 14,900 per kilogram (kg). The price is for the areas of Java, Lampung, Sulawesi, South Sumatra, Bali and West Nusa Tenggara (NTB).

Meanwhile, for Aceh, North Sumatra, West Sumatra, Riau, Riau Islands, Bengkulu, Jambi, Bangka Belitung Islands, Kalimantan, and NTT, the applicable HET is IDR 15,400 per kg.

Meanwhile, the premium rice HET that applies to the Papua and Maluku regions is IDR 15,800 per kg.