Wow, Pregnancy Checks Will Also Be Taxed, Birth Fees Will Be More Expensive

Illustration. (Photo: Doc. Antara)

JAKARTA - After the government plans to impose a value added tax (VAT) on basic necessities and education services, it turns out that the tax will also be imposed on maternity services. The plan to collect the maternity service tax is contained in the draft of the Fifth Amendment to Law Number 6 of 1983 concerning General Provisions and Tax Procedures (KUP).

Quoted by VOI, Saturday, June 12, the provisions in Article 4A were deleted in the draft. In Article 4A Paragraph 3, medical health services contained in point A are removed from the types of services that are not subject to VAT. This means that medical health services, including maternity services, will be taxed.

Referring to Law (UU) No. 49 of 2009, medical health services include:

1. services of general practitioners, specialists, and dentists;

2. veterinary services;

3. services of health experts such as experts

acupuncturists, dentists, nutritionists, and specialists

physiotherapy;

4. midwifery services and traditional birth attendants;

5. paramedic and nurse services;

6. Hospital services, maternity hospitals, health clinics, health laboratories, and

sanatorium;

7. services of psychologists and psychiatrists; and

8. alternative medicine services, including those performed by psychics.

Not only that, the VAT rate will also increase to 12 percent from the current 10 percent. Meanwhile, the VAT rate as referred to in paragraph (1) of the draft UU KUP can be changed to a minimum of 5 percent and a maximum of 15 percent.

As for the latest article, Article 7A, it is explained that VAT may be imposed at a different rate from the rate on the delivery of certain Taxable Goods and/or certain Taxable Services; import of certain Taxable Goods; and utilization of certain intangible Taxable Goods and/or certain Taxable Services from outside the Customs Area within the Customs Area.

The different tariffs as intended are subject to a minimum of 5 percent and a maximum of 25 percent.