In addition to premium rice, there are many goods frequently consumed by the lower middle class that also need to be evaluated for their VAT imposition.
This article has been translated using AI. See original.
JAKARTA, KOMPAS — Head of the National Food Agency or Bapanas Arief Prasetyo Adi said that premium rice is not subject to a 12 percent Value Added Tax or VAT rate. This is the same as other strategic food commodities, such as medium rice, ruminant meat, soybeans, shallots, garlic, and chilies.
Regarding special rice, Bapanas has not regulated it so far. There is also no regulation from the Minister of Finance regarding this matter so it will be discussed further.
"Earlier I had coordinated with the Coordinating Minister for Economic Affairs. Special rice will be regulated later," he told Kompas, Sunday (12/22/2024).
Economic Infographics Economic Stimulus Packages for Welfare
Executive Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira said that premium rice should indeed be exempted from VAT. The imposition of VAT on premium rice is feared to have an impact on all types of rice. In fact, rice has a big role in driving inflation.
"In addition, premium rice can also spread to the increase in production costs of various types of businesses, such as food and beverages at the UMKM (micro, small, and medium enterprises) level, to rice used for the MBG (Free Nutritious Meals) program. This means that the government is right to exempt premium rice from the 12 percent VAT," said Bhima.
Meanwhile, Executive Director of the Center of Reform on Economics (Core) Indonesia Mohammad Faisal said that in addition to premium rice, there are many goods that are often consumed by the lower middle class that also need to be evaluated for their VAT imposition. This is important to prevent the economic decline of these groups.
"In fact, what we are highlighting now is the problem of the decline of the middle class and it cannot be done with the distribution of facilities (incentives) that are partial in nature, especially in the short term. The reason is, they have experienced a decline in purchasing power for years before the Covid-19 pandemic (in 2020)," he said.
KOMPAS/TOTOK WIJAYANTO (TOK)Masses from various elements of society held a peaceful demonstration to reject the 12 percent increase in Value Added Tax (VAT) which will take effect in January 2025 across from the Merdeka Palace, Jakarta, Thursday (12/19/2024). They also plan to submit a petition rejecting the 12 percent VAT increase to the President. As of Thursday afternoon, the petition had been signed by more than 120,000 netizens.
Previously, on Monday (16/12/2024), the government announced the implementation of 12 percent VAT along with the stimulus and incentives of the policy. The government also submitted a list of premium or luxury goods/services subject to 12 percent VAT, namely premium rice, premium fruit, premium meat, premium fish and shrimp, premium education, premium services, and electricity tariffs for household customers with a power of 3,500-6,600 volt ampere (VA).
The government also provides stimulus or incentives for the middle class and working class. The various stimuli are divided into several sectors, such as the property, automotive, and electricity sectors.
The latest exception to the VAT increase next year is for three types of basic and important necessities (bapokting), such as wheat flour, industrial sugar, and Minyakita bulk cooking oil.
Specifically for these three types of goods, the government will bear 1 percent VAT. This means that starting next year, these three types of goods will still be subject to a VAT rate of 11 percent, not 12 percent like other goods. This is because the 1 percent has been borne by the government.
JAKARTA, KOMPAS — Head of the National Food Agency or Bapanas Arief Prasetyo Adi said that premium rice is not subject to a 12 percent Value Added Tax or VAT rate. This is the same as other strategic food commodities, such as medium rice, ruminant meat, soybeans, shallots, garlic, and chilies.
Regarding special rice, Bapanas has not regulated it so far. There is also no regulation from the Minister of Finance regarding this matter so it will be discussed further.
"Earlier I had coordinated with the Coordinating Minister for Economic Affairs. Special rice will be regulated later," he told Kompas, Sunday (12/22/2024).
Economic Infographics Economic Stimulus Packages for Welfare
Executive Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira said that premium rice should indeed be exempted from VAT. The imposition of VAT on premium rice is feared to have an impact on all types of rice. In fact, rice has a big role in driving inflation.
"In addition, premium rice can also spread to the increase in production costs of various types of businesses, such as food and beverages at the UMKM (micro, small, and medium enterprises) level, to rice used for the MBG (Free Nutritious Meals) program. This means that the government is right to exempt premium rice from the 12 percent VAT," said Bhima.
Meanwhile, Executive Director of the Center of Reform on Economics (Core) Indonesia Mohammad Faisal said that in addition to premium rice, there are many goods that are often consumed by the lower middle class that also need to be evaluated for their VAT imposition. This is important to prevent the economic decline of these groups.
"In fact, what we are highlighting now is the problem of the decline of the middle class and it cannot be done with the distribution of facilities (incentives) that are partial in nature, especially in the short term. The reason is, they have experienced a decline in purchasing power for years before the Covid-19 pandemic (in 2020)," he said.
KOMPAS/TOTOK WIJAYANTO (TOK)Masses from various elements of society held a peaceful demonstration to reject the 12 percent increase in Value Added Tax (VAT) which will take effect in January 2025 across from the Merdeka Palace, Jakarta, Thursday (12/19/2024). They also plan to submit a petition rejecting the 12 percent VAT increase to the President. As of Thursday afternoon, the petition had been signed by more than 120,000 netizens.
Previously, on Monday (16/12/2024), the government announced the implementation of 12 percent VAT along with the stimulus and incentives of the policy. The government also submitted a list of premium or luxury goods/services subject to 12 percent VAT, namely premium rice, premium fruit, premium meat, premium fish and shrimp, premium education, premium services, and electricity tariffs for household customers with a power of 3,500-6,600 volt ampere (VA).
The government also provides stimulus or incentives for the middle class and working class. The various stimuli are divided into several sectors, such as the property, automotive, and electricity sectors.
The latest exception to the VAT increase next year is for three types of basic and important necessities (bapokting), such as wheat flour, industrial sugar, and Minyakita bulk cooking oil.
Specifically for these three types of goods, the government will bear 1 percent VAT. This means that starting next year, these three types of goods will still be subject to a VAT rate of 11 percent, not 12 percent like other goods. This is because the 1 percent has been borne by the government.
:quality(80)/https://asset.kgnewsroom.com/photo/pre/2024/11/10/93a411e9-586a-4c82-9627-10494eb77f4c_jpg.jpg)
:quality(80)/https://asset.kgnewsroom.com/photo/pre/2024/12/16/37296106-f072-4117-b6d8-dbc514e91b9d_png.png)
:quality(80):watermark(https://cdn-content.kompas.id/umum/kompas_main_logo.png,-16p,-13p,0)/https://asset.kgnewsroom.com/photo/pre/2024/12/19/d717d58d-ec14-4ef7-80ca-425c75d44226_jpg.jpg){kind=logo}