The Polemic Of The Staple Food VAT, Sri Mulyani's Subordinates Make Sure There Is No Discussion With The DPR

JAKARTA – The discourse on imposing a Value Added Tax (PPN) for basic necessities (sembako) was finally confirmed directly by the Ministry of Finance (Kemenkeu). Through the Expert Staff of the Minister of Finance for State Expenditures at the Ministry of Finance Kunta Wibawa, the government provided the answer.

"It has not been discussed with the DPR and its implementation is not now," he said during a discussion held by the Ministry of Finance on Thursday, June 10.

According to Kunta, the plan to impose VAT on basic necessities emerged after the government took the initiative to revise the Draft Law (RUU) on General Provisions and Tax Procedures. Meanwhile, the purpose of the renewal of the bill is claimed to be a reform step for the creation of justice in tax collection.

"The government wants in carrying out tax collection there is a spirit of justice for all," he said.

Based on the information gathered by the editors, there are three schemes in implementing the VAT for basic necessities. First, the proposed VAT of 12 percent.

Second, the multi-tariff scheme is 5 percent lower than the first scheme by strengthening legality through a Government Regulation. And the third is through the final 1 percent VAT method.

To note, the government tends to choose the third scheme, namely the final 1 percent VAT because it can accommodate and minimize the impact on small and medium businesses.

Meanwhile, in the 2021 APBN posture, it is stated that the target for this year's tax revenue is IDR 1,229.58 trillion. This figure is 14.69 percent greater than the realization of 2020 tax revenue which was recorded at IDR 1,072 trillion.

Then, in the 2022 State Budget Draft, it is explained that next year's state revenue is estimated to be around Rp. 1,823 trillion or 10.18 of gross domestic product (GDP). Meanwhile, for the spending sector, it was stated at Rp2,631 trillion or 14.6 of GDP.

From this estimate, it is found that the budget deficit will be in the range of 800 trillion or the equivalent of 4.5 percent of GDP.