What Is The Potential For Staple Food Tax? Government: Not To Increase Revenue

JAKARTA - The government through the Special Staff of the Minister of Finance Yustinus Prastowo explained that the planned imposition of Value Added Tax (VAT) on a number of strategic staple goods (sembako) would not be targeted as a new source of revenue for the state.

The reason is that the intention of state administrators to propose the discourse is intended to provide more precise tax justice and better tax administration governance.

"In terms of basic necessities, the government does not intend to increase tax revenue at all, but rather in the context of justice and tax administration," he said in a virtual dialogue, Saturday, June 12.

Yustinus added that currently all levels of society are not subject to taxes at all for basic consumption activities. In fact, the welfare status of each group is quite different.

For example, he then compared the purchase of basic necessities at luxury supermarkets and traditional markets, which are both tax-free.

“Even though the people who enjoy it are different. This is the basis for why the government calls this tax justice," he said.

For information, the government is said to be proposing a revision of the draft Law (RUU) Number 6 of 1983 concerning General Provisions and Tax Procedures (KUP) to the DPR.

It is stated that there are three schemes in the implementation of the staple food VAT. 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.

The government itself 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.