Sri Mulyani Brings Good News To Indonesian Mothers: 3 Kg LPG Gas Free Of VAT
Illustration (Photo: Doc. Antara)

JAKARTA – The government through the Ministry of Finance (Kemenkeu) has decided to abolish the levy of Value Added Tax (VAT) for subsidized 3 Kg LPG products.

This is stated in the Minister of Finance Regulation (PMK) Number 62/PMK.03/2022 concerning Value Added Tax (PPN) on the Delivery of Certain LPG to implement the provisions of Law Number 7 of 2021 concerning Harmonization of Tax Regulations.

"VAT for subsidized 3 kg LPG is still borne by the government," said the Head of the Sub-Directorate of VAT Regulations at the Directorate General of Taxes at the Ministry of Finance Maria Wiwiek Widwijanti in an official statement, Wednesday, April 6.

According to Sri Mulyani's subordinate, this latest PMK also regulates the imposition of VAT on the part of the price that is not subsidized, where VAT is paid by the buyer.

Wiwiek gave an example, the process of distributing LPG from Pertamina to consumers through agents or bases. In this case, the VAT imposed is on the difference or margin of the agent or base.

For example, the difference or the agent's margin is IDR 1,000 per 3 Kg LPG, then the VAT is IDR 1,000 times the tariff.

"That's because the price of 3 Kg LPG, HJE has been collected at the Pertamina business entity level. So that the difference is the basis for the imposition of taxes and the rate is only 1.1 percent of the difference. So it can be seen that the imposition is only very small, later it will be imposed on consumers," he said.

Wiwiek also reminded that the retail selling price of 3 kg LPG can be different in each region as stipulated in the regulations of the governor, mayor, or regent of each region.

"This is because transportation costs and other costs are taken into account in determining the retail selling price of 3 kg LPG," concluded Wiwiek.


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