JAKARTA - The government's plan to collect value-added tax or VAT on basic goods or basic necessities has received attention from many parties. This plan was also rejected by the Indonesian Market Traders Association or IKAPPI. They asked the government in this case the Ministry of Finance to stop this plan.
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, tubers, and spices.
Therefore, Abdullah regretted the government's plan. Even so, he understands that the country is in need of a lot of income during this COVID-19 pandemic. However, he said, not by imposing VAT on basic necessities.
"Not like that, blindly to the point of burdening the small community because the effect is very big for us. Currently, we are surviving the onslaught of COVID-19 pandemic, which has reduced our turnover by 60 percent. We have walked independently to survive, but why are we still subject to VAT? We think it cannot be tolerated, we think this is crazy," he told VOI, Thursday, June 10.
Abdullah said the obstacles faced by market traders before the COVID-19 pandemic were enough to make it difficult. The pandemic is getting worse.
"First, our problem is on food prices. This is also a constitutional mandate, this is the mandate of the food law, it is the right of the people and the state has an obligation to fulfill it. Even then, it is still quite difficult for us to maintain the food chain network, this food does not fluctuate," he said.
According to Abdullah, the fact is that every year the price fluctuates. Like during the last Ramadan, people's purchasing power was quite high, so the prices of some commodities increased.
"That's our first record. We just haven't felt a good food trade system. Second, food distribution. Food distribution is quite expensive, we haven't felt the government touch about food distribution," he said.
Furthermore, Abdullah said these two obstacles have made it difficult for market traders. The VAT plan for basic necessities will worsen the existing condition. In fact, it can make traders out of business.
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"It is certain that we are out of business. Right now we are facing this pandemic, we have to work with sweat and blood to survive. There are no buyers coming, high prices, no capital, that's all we have to survive, pay for distribution, we must maintain health protocols, We have to take care of ourselves, even then it's hard at this time," he explained.
According to Abdullah, currently, market traders are struggling to survive in the midst of the COVID-19 pandemic. Because of that, he asked the government to help traders get up instead of worsening their condition.
"We want to ask for the blood to be cleaned. We want to stand up again, we want to rise again, we want to run to restore the economy but instead, we are hit by the VAT issue. I think this is quite crazy," he said.
Abdullah said his party would take constitutional measures to thwart the plan to impose a tax on basic necessities.
"We will protest to President Jokowi, including conducting a roadshow to the DPR representing traders, without taking any demonstrations to the streets. We will make efforts to communicate with all parties so that this plan can be thwarted," he said.
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