VAT For Basic Foods, Workers To Sri Mulyani: Don't Act Like Colonizers, Buying A Car Made Easy, Small People's Food Is Taxed

Illustration. (Photo: Doc. Antara)

JAKARTA - The government's plan to collect value-added tax or VAT on basic goods or necessities has received attention from many parties. One of them, the Confederation of Indonesian Trade Unions (KSPI), rejected the plan. This is because raising VAT in the necessities sector is the colonial method.

KSPI President Said Iqbal asked Finance Minister Sri Mulyani not to act like an occupier. Because imposing tax amnesty volume II and applying VAT for necessities is similar to colonial nature.

"We strongly condemn. Re-imposing the tax amnesty volume II and increasing the VAT, especially necessities, are colonial methods carried out by the Minister of Finance. This is the nature of colonialism", he said in a virtual press conference, Thursday, June 10.

Furthermore, Iqbal questioned the government's attitude. This is because the government actually provides tax relaxation for rich people, including car manufacturers who get PPnBM (Sales tax on luxury goods) relaxation.

"Rich people are given tax relaxation, including car manufacturers, given PPnBM relaxation in a certain car capacity of 0 percent. But people who eat what we know as necessities are planned to be taxed. That is the nature of colonialism", he said.

Iqbal reminded Sri Mulyani to review this plan. Because the workers will not remain silent to fight so that this plan does not come into effect.

"The Minister of Finance should not act as colonialism against the people. The workers will be at the forefront of fighting the law and opposing action movements", he said.

KSPI, said Iqbal, will fight for it until the Constitutional Court is ratified by the Indonesian Parliament. However, he also asked the Parliament to strongly reject the plan of Minister of Finance, Sri Mulyani.

"You (Indonesian Parliament) were chosen not to represent power, be representatives of the people. It would be outrageous to ratify the tax amnesty volume II and increase VAT for necessities", he said.