Staple Food Subject To VAT, YLKI: Inhumane, Increases The Community's Burden

Illustrated by Pasar (Irfan Meidianto / VOI)

JAKARTA - The government's plan to collect value added tax or VAT on basic goods or basic necessities has received attention from many parties. Including the Indonesian Consumers Foundation (YLKI) considered the plan inhumane.

The chairman of the YLKI Daily Committee, Tulus Abadi, said that this plan is clearly an inhumane policy discourse. Moreover, Tulus said, it will be implemented in the midst of a pandemic like now, when people's purchasing power is dropping drastically. "The imposition of VAT will become a new burden for the public and consumers, in the form of an increase in the price of basic necessities. Not to mention if there is a market distortion, the increase will be even higher," he said, in Jakarta, Thursday, June 10. Tulus said the imposition of VAT on basic commodities is also can be a threat to the security of food supply in the community. Therefore, this discourse must be cancelled. "The government should be more creative, if the reason is to dig up revenue from APBN funds," he said.

According to Tulus, the government could increase the cigarette excise tax more significantly. By increasing the cigarette excise tax, the potential could reach more than Rp. 200 trillion. In addition, it will have a positive impact on the lower middle class. "Because it can reduce cigarette consumption, and allocate it for food needs," he explained. Similarly, the Confederation of Indonesian Trade Unions (KSPI) rejected the plan. This is because raising VAT in the basic necessities sector is the colonial method. KSPI President Said Iqbal asked Finance Minister Sri Mulyani not to act like a colonialist. According to Iqbal, imposing a tax amnesty volume II and applying VAT for basic necessities is similar to colonial nature. are the ways of colonialism carried out by the Minister of Finance. This is the nature of the colonialists," 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 relaxation. "The rich are given tax relaxation, including car manufacturers, given PPnBM relaxation in a certain car capacity of 0 percent. subject to taxes. That is the nature of colonialism, colonialism," he said. Iqbal reminded Sri Mulyani to review this plan. This is 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.