KERIS Urges Government To Lower Culinary Taxes To 5% With A Minimum Turnover Of IDR 45 Million Per Month

Dr. Ali Mahsun Atmo M. Biomed Ketum KERIS. (Bambang Eros VOI)

JAKARTA - Chairman of the Indonesian People's Economic Committee (KERIS), dr. Ali Mahsun Atmo M. Biomed, urged the government to lower the culinary tax to 5% with a minimum turnover of IDR 45 million per month. This pressure arose in response to the viral news about angkringan in Solo which was taxed at IDR 12 million per month based on Law No. 1 of 2022 and Perda No. 14 of 2023.

The regulation states that restaurants, including street vendors (PKL) with a turnover of IDR 7.5 million per month and above, are subject to a tax of 10%. In DKI Jakarta, in accordance with Regional Regulation No. 1 of 2024, the minimum turnover taxed at 10% is IDR 45 million per month. Although Law No. 1 of 2022 gives local governments the authority to collect taxes and levies on food and beverages, dr. Ali Mahsun assessed that the 10% tax burden is very burdensome for culinary business actors and adds to the people's lives expenses.

In addition to taxes, processed and ready-to-eat foods are now also subject to excise duty in accordance with Government Regulation No. 28 of 2024 and Law No. 17 of 2023 concerning Health. This condition is exacerbated by the rampant extortion and high digital economic costs, which makes Indonesia's culinary prices more expensive and difficult to compete with foreign culinary. As a result, the turnover of culinary business actors has decreased and has the potential to cause bankruptcy.

The General Chairperson of the Street Vendors Association (PKL) also highlighted the impact of the COVID-19 pandemic which has left the people's economy recovering, the turnover has declined, and people's purchasing power has not improved. In addition, the sluggish economy and rampant layoffs in the labor-intensive, startup, and technology sectors threaten 50 million middle class who are threatened with poverty.

PP No. 28 of 2024 and Law No. 17 of 2023 which regulates excise duty on processed and ready-to-eat food can trigger mass layoffs, which in turn harm MSMEs in Indonesia.

Therefore, KERIS urges the government to establish the following policy: first, the turnover of culinary restaurants, including street vendors who are subject to regional taxes, must be at least IDR 45 million per month. Second, the amount of tax must be lowered to 5%. And third, local governments are required to provide subsidies for "checkers" to culinary business actors to ensure transparency and prevent moral hazard.

With this policy, it is hoped that there will be clear and equitable standards throughout Indonesia. "It is unfair if the turnover is IDR 7.5 million per month or IDR 250 thousand per day is subject to a 10% tax. Pity the small people in Indonesia," said dr. Ali Mahsun.

Even though it is difficult, KERIS believes that there are still leaders in this country who are wise, wise, and fair to the small people. As President of Kawulo Alit Indonesia (KAI), dr. Ali Mahsun hopes that the government can protect the economic actors of the people and the lower middle class.