The Discourse Of The Staple Food Tax: The Psychology Of Traders Is Disturbed, Food Prices Soar

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JAKARTA - The Indonesian Market Traders Association (IKAPPI) noted that currently there is an increase in food ingredients due to the discourse on the imposition of value added tax (VAT) for basic necessities.

"IKAPPI considers that the growing issue of taxing basic food items has spread and disrupted market psychology. We noted that some food items have increased in the last 2 days," said Head of Information and Communications Division of IKAPPI DPP Muhammad Ainun Najib in his statement, Sunday, June 13. .

As for the increase in foodstuffs, including chicken, which is usually Rp. 30 thousand, now it reaches Rp. 40 thousand, an increase of 10 thousand; cooking oil is usually Rp. 16 thousand to Rp. 17 thousand; beef in the range of IDR 130 thousand, up IDR 140 thousand.

Then, chicken eggs are usually Rp. 23 thousand per kilogram, now it is Rp. 25 thousand; kating garlic which is usually IDR 35 thousand to IDR 48 thousand; ordinary garlic from Rp. 32 thousand to Rp. 40 thousand.

Ainun Najib believes that the government must take firm action to stop the widespread issue of the basic food tax from circulating. It is better if Finance Minister Sri Mulyani stops the plan to impose a basic food tax.

"We know that this country needs a lot of income from taxes for state spending because of the COVID-19 crisis, but it also doesn't have to be a burden on food because food needs are the basic needs of society. There is a huge domino effect on purchasing power and economic sustainability," he clear.

If the basic food tax is realized, Ainun Najib sees that there will be sacrifices for some. First, farmers because entrepreneurs will reduce the operational costs of purchasing which must be burdened with VAT. The second party is traders and consumers.

"So, we hope that these efforts will be stopped immediately so that they do not drag on and prolong market psychology which has an impact on food prices and there will be no more noise in this country," he concluded.