Contradictory To The Imported Vehicle Tax, DPR Leader: Reviewing The VAT For Basic Foods!

Chairman of the National Awakening Party (PKB) Muhaimin Iskandar (Photo: Instagram @cakiminow)

JAKARTA - Deputy Speaker of the House of Representatives of the Republic of Indonesia Abdul Muhaimin Iskandar alias Cak Imin asked the government to review the plan for the imposition of Value Added Tax (PPN) for basic goods (sembako) as contained in the revision of Law Number 6 of 1983 concerning General Provisions and Tax Procedures (KUP). ). Moreover, the policy was rolled out during a pandemic like now.

"It needs to be reviewed. The current economic situation is difficult," said Muhaimin, Friday, June 11.

According to the man who is familiarly called Cak Imin, the policy plan has the potential to make people's lives more difficult.

On the other hand, he added, the government has just issued a zero percent VAT policy for imported vehicles and property to stimulate the economy. So that the sector's businesses can bounce back so that the purchasing power of consumers increases.

"This is counterproductive to the government's efforts to suppress inequality through tax reform in the revision of the KUP Law," said the general chairman of the PKB.

In addition, he continued, market traders are experiencing difficulties because more than 50 percent of their trade turnover has decreased during this one-year pandemic.

"If the basic needs are removed from the group of types of goods that are not subject to VAT, of course it is detrimental to the community because basic necessities are needed by the community," explained Gus Ami.

In addition, the chairman of the House of Representatives in the field of people's welfare continued, the VAT for basic needs will cause a domino effect theory. One of them, the purchasing power of the people decreased, especially the workers/employees of the company.

"So the economy is increasingly difficult to rise," he said.

It is known that the government plans to impose a Value Added Tax (VAT) on basic goods needed by many people.

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).

Basic goods that are urgently needed by the community and are not subject to VAT were previously regulated in the Minister of Finance Regulation number 116/PMK.010/2017.

These goods include rice and grain, corn, sago, soybeans, consumption salt, meat, eggs, milk, fruits, vegetables, sweet potatoes, spices, and consumable sugar.