The Polemic Of The Staple Food Tax, Staff Of Sri Mulyani Explains That The Object Of VAT Is Not Necessarily Taxed

Illustration (Photo: Doc. Antara)

JAKARTA - Special Staff to the Minister of Finance Yustinus Prastowo said that too wide an exception to basic necessities enjoyed by all levels of society has made the state fail to administer it properly and fail to invite those who can afford to pay taxes.

"This is what the government really wants to overcome over the polemic of the basic food tax that is being discussed at this time," he said when he was a resource person in a public dialogue broadcast online by the MNC network on Saturday, June 12.

According to him, certain groupings can bring positive things to tax collection in the country.

"So what is the object of VAT is not necessarily subject to VAT levies," he said.

For example, Yustinus then explained when the government decided not to impose a tax on TNI weapons products produced by local manufacturers.

“Weapons and defense equipment used by the TNI are actually taxable goods. But because of its strategic position, the government decided to abolish the tax on these goods,” he said.

Yustinus added that currently the imposition of VAT on certain goods is in the range of 10 percent.

“The form of construction that the government really wants to implement is how to determine this based on multiple tariffs. For example, goods that are only consumed by the upper class are subject to 15-20 percent, while for groups of strategic goods used by the public, they can be subject to Final VAT of 1-2 percent or even none at all," he explained

Furthermore, the confidant of the Minister of Finance (Menkeu) Sri Mulyani admitted that the government had indeed submitted the draft VAT levy adjustment to the DPR.

“We (the government) have made schemes, there are normal tariffs, high tariffs, lower tariffs, 1-2 percent final tariffs, or no fees at all. Well, this is what will be discussed with the board members. The government is not in a position alone to decide this," he said.