Airlangga: Oil, Wheat Flour And VAT Industrial Sugar Remain The Same, 1 Percent Is Borne By The Government

Press Conference on VAT 12 Percent (Photo: Mery Handayani/VOI)

Coordinating Minister for the Economy Airlangga Hartarto said the government provided a stimulus to increase Value Added Tax (VAT) by 1 percent, so that certain goods were not affected by the increase in VAT by 12 percent.

Furthermore, Airlangga said certain items that received the VAT stimulus included Oilita, wheat flour and industrial sugar.

"The government provides a stimulus or economic policy package for low-income households, the VAT is borne by the government with 1 percent for basic and essential goods, namely Oilita, used to be bulk oil, it was given 1 percent, so it didn't go up to 12 percent," he said at a press conference at the Coordinating Ministry for the Economy Office, Jakarta, Monday, December 16.

"Then wheat flour and industrial sugar, so each remains at 12 percent, which is 1 percent borne by the government," he continued.

Furthermore, Airlangga said this stimulus was given to maintain people's purchasing power, especially for basic needs and in particular.

"Industrial sugars that support the food and beverage processing industry whose role in the processing industry is quite high, namely 36.3 percent, also still 11 percent," he said.

Meanwhile, continued Airlangga, for goods such as basic needs, health to educational services needed by the community, the VAT is given a 0 percent facility, aka not subject to VAT.

"So, goods such as basic necessities, rice, meat, fish, eggs, vegetables, milk, consumption sugar, education services, health, public transportation, labor, financial services, insurance services, polio vaccines, HANA (simple houses) and water consumption are all VAT-free," he said.