Food VAT Issues, Ganjar Pranowo: Just Clarify First, Don't Create An Image As If Everything To Be Taxed

Illustration - A trader is serving buyers at the Sidodadi Traditional Market Klewon Laweyan Solo, Friday. (Photo: Bambang Dwi Marwoto/Antara)

JAKARTA - Central Java Governor Ganjar Pranowo advised the Ministry of Finance and the House of Representatives to clarify to the public about the issue of the imposition of value-added tax (VAT) for basic goods or basic necessities.

"Just clarify what the draft is, what's in it, the statement is true or not. I think the Ministry of Finance or the council can clarify the matter," he said in Semarang, Sunday.

According to Ganjar, clarification is important so that there is no public image or assumption that everything will be taxed and implemented immediately.

Moreover, he continued, the information circulating in the community at this time stated as if the VAT Bill on basic food items had been discussed and would be completed.

"So I think it's also good if the ministry conveys the correct clarification because later there won't be an 'image' as if all of this wants to be taxed, of course, it's impossible," he said.

The PDI-P politician admitted that he was contacted by the Ministry of Finance and explained about the issue

"I think the authority holder must explain, it may be from the executive or from the legislature, what is in it (the draft bill) is open," he said.

He believes that the government's plan to implement VAT for basic needs will not be realized in the near future and considers it outrageous if the policy is implemented at a time when people's economic conditions are slumping due to the COVID-19 pandemic like now.