Minister Of Trade Budi Rejects Proposed 10 Percent Import Tax On Used Clothing Imports

Minister of Trade Budi Santoso (Photo: Mery Handayani/VOI)

JAKARTA - The government refuses to impose taxes on imported activities of used clothing or thrifting. This refusal follows a request from the Indonesian Used Clothing Traders Alliance (APPBI) asking to be taxed up to 10 percent so that they can do business legally.

Trade Minister Budi Santoso said the request could not be fulfilled because importing imported goods was illegal.

In fact, Budi emphasized that because these activities were illegal, the government would continue to closely monitor them.

"Yes, it's called illegal, illegal goods. That's why we continue to monitor it," he said when met in South Jakarta, Thursday, December 4.

Separately, the Deputy for Small Business at the Ministry of MSMEs, Temmy Setya Permana, said that used goods cannot be legalized through the provision of import quotas and the imposition of taxes.

"It's impossible to tax illegal goods, how about it? The status is illegal goods. It's impossible to give a quota, you want to be taxed. Yes, there are clear regulations," said Temmy.

When asked about the plan of a Thrifting trader who wanted to change the rules through a judicial review, Temmy said the move was the right of every citizen.

"Yes, go ahead, that's the right of every citizen. Just do a judicial review, go ahead with the right arguments and studies. He will fight in the Supreme Court, if the law in the Permendag must go to the Supreme Court. But that's their right," he said.

On the other hand, Temmy said the Ministry of MSMEs would meet with Thrifting traders to discuss this issue. This includes the readiness of traders to sell local products as substitutional goods.

Furthermore, Temmy said that the plan for Pasar Senen Gedebage to Bali would be present at the meeting.

"Tomorrow morning, they will vent with the Minister. How many traders are there, how much is the turnover, huh? We can make sure tomorrow is even more technical. What is certain is that they are ready to sell local products as substitutions, right, we have to make sure," he said.