Rejecting VAT On Basic Food, Market Traders: We Can Roll Out

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The government will impose a Value Added Tax (PPN) on basic necessities that are needed by many people. This plan was rejected by the Indonesian Market Traders Association or IKAPPI. They asked the government to stop this plan.

As is known, VAT will also be imposed on goods resulting from mining or drilling taken directly from the source. The policy will be contained in the expansion of the object of VAT which is regulated in the revision of Law Number 6 of 1983 concerning General Provisions and Tax Procedures (KUP).

The general chairman of Ikappi Abdullah Mansuri said that if basic commodities were subject to VAT, it would burden the community. This is because the goods subject to VAT include rice and grain, corn, sago, soybeans, consumption salt, meat, eggs, milk, fruits, vegetables, sweet potatoes, spices, and sugar.

Furthermore, he said that market traders are experiencing difficult conditions because more than 50 percent of trading turnover has fallen. Meanwhile, the government is considered unable to carry out food stability in the last few months.

"We have recorded that more than 50 percent of market traders' turnover has decreased. In addition, the government has not been able to stabilize food ingredients in recent months. Last month's chili price was up to Rp. 100,000, beef prices have not been stable, want to be burdened with VAT again? Crazy," he said. in a written statement, Wednesday, June 9.

In fact, Mansuri said that it is currently difficult for market traders to sell their wares because the economy is declining and people's purchasing power is low. Thus, the imposition of VAT rates will only make traders out of business.

"We have difficulty selling. Want to add more VAT, how can we not go out of business. We strongly protest these efforts. And as an organization that collects market traders in Indonesia, we will protest to the president so that the relevant ministries do not make efforts that actually make it difficult for members we (market traders)," he said.

Therefore, Mansuri asked the government to stop efforts to make staple foods an object of tax and must consider many things before implementing a policy.

"Moreover, the policy was rolled out during the pandemic and the current difficult economic situation," he said.