The Comedy of Taxation: Jakarta’s VAT Increase
Jakarta, CNN Indonesia – Well, folks, it seems the Indonesian government has decided to spice things up with a sprinkle of tax! Next year, we’ll see the Value Added Tax (VAT) dance its way from 11 percent to a jazzy 12 percent. I mean, why stop at 11 when you can give the economy a bit of a tickle? It’s like moving from one awkward dance move to another at your uncle’s wedding – awkward, yet strangely compelling!
Finance Minister Sri Mulyani, ever the party pooper of fiscal responsibility, announced there’s “no going back” on this VAT increase – it’s set in stone. “Hold on to your wallets,” she might as well have said, but with a smile that says, “We’re all in this together!” as she tightens the financial noose just a bit more. What a charmer!
Speaking at the Commission XI Working Meeting (which, let’s be honest, sounds more like a subcommittee for knitting enthusiasts than a serious discussion on taxation), she emphasized the importance of maintaining the health of the General State Budget (APBN). “We need to respond to global financial crises,” she earnestly remarked. Yes, nothing screams “healthy” like a sudden increase in taxes that makes you question if taking a second mortgage might buy you a loaf of bread!
But fear not, dear citizens! Despite this VAT hike, there are still some goods and services that are deemed untouchable – you know, like your nosy neighbor at a barbecue. Here’s a list of things that will remain VAT-free: religious services, art and entertainment services, and even food and beverages at your favorite local eatery. Yes, the government recognizes the importance of keeping your plate full while they pilfer away at your paychecks. They’re practically saying, “You can still eat, just remember to chew slowly!”
And speaking of necessities, if you’ve been hoarding rice and corn, it may finally be time to come out from under your stockpile of grains! Rice, sago, fresh vegetables, and all that good stuff will continue to escape the greedy clutches of the VAT. It’s a miracle! Who knew a government’s approach to taxation could actually involve some form of social responsibility?
The Details That Spark Joy (And Confusion)
For our food enthusiasts out there, let’s break down some of the things that will not be subject to this fancy new VAT increase:
- Freshly picked fruit and vegetables – because who doesn’t want to pay taxes on a rotten tomato?
- Unprocessed meat, eggs, and dairy – health nuts rejoice!
- Sweet potatoes and spices – finally! Some joy in our sad little diets.
In this beautifully bureaucratic tapestry, we’re reminded that while the government is always happy to raise taxes, it’s also willing to let a few things slide (no, not your tax forms), like basic necessities. It’s almost like they’re saying, “Go ahead, keep those essential goods flowing, but that fancy new gadget? Oh, you better believe we’re taking our cut!”
As the curtain rises on the new tax landscape, just remember: every penny counts, especially when it’s going toward helping the government find their next grandiose project! Let’s just hope that the irony isn’t lost on us as the VAT smacks us in the face like a soggy pastry. Now go forth, consume wisely, and don’t forget to smile when you pay those bills – because, let’s face it, laughter is the best tax deduction!
* Reports from CNN Indonesia* *
Jakarta, CNN Indonesia —
Starting next year, the Indonesian government will implement an increase in the Tax Value Added (PPN), raising it from the current rate of 11 percent to a new rate of 12 percent.
This adjustment is mandated by Law Number 7 of 2021 concerning Harmonization of Tax Regulations (HPP), which aims to optimize the taxation framework across the country.
Despite strong opposition from various sectors, Finance Minister Sri Mulyani has firmly stated that the government has no intention of delaying the VAT increase. She emphasized that maintaining the health of the State Budget (APBN) is crucial, as it serves as a vital shock absorber for the economy during turbulent times.
“The health of the APBN must still be maintained because it needs to be capable of responding effectively to episodes of a global financial crisis. We have a responsibility to protect it,” she affirmed during the Commission XI Working Meeting held on Wednesday, November 13.
Even with the VAT increase to 12 percent, there remain multiple categories of goods and services that will not be impacted by this new policy.
These exceptions are clearly enumerated in the HPP Law and are further detailed in Minister of Finance Regulation (PMK) Number 16 of 2017, which outlines the basic necessities that are exempt from VAT.
List of goods and services not subject to the 12 percent VAT under the HPP Law Article 4A includes:
1. Food and drinks served in restaurants, hotels, stalls, and eateries, which fall under regional taxes and levies based on relevant laws.
2. Money, gold bullion intended for state foreign exchange reserves, and various securities.
3. Religious services.
4. Arts and entertainment services, which encompass all types of services rendered by arts and entertainment professionals, also subject to regional taxation laws.
5. Hotel services related to room rentals and accommodations, in accordance with regional tax regulations.
6. Provision of parking space services, including the management and availability of parking areas for users, subject to relevant tax regulations.
7. Services delivered by government entities as part of their official duties, which can only be conducted by the government in accordance with statutory regulations.
8. Catering services that provide food and beverages, aligned with regional tax and levy policies.
List of goods not subject to the 12 percent VAT per PMK 116/2017 includes:
1. Rice and various grains, whether husked, hulled, polished, or unprocessed.
2. Corn, in both shelled and unshelled forms, excluding seeds.
3. Sago and its derivatives.
4. Soybeans, both whole and broken, apart from seeds.
5. Iodized and non-iodized salt suitable for consumption.
6. Unprocessed fresh meat from livestock and poultry.
7. Fresh eggs in their original state.
8. Dairy milk that has been minimally processed.
9. Freshly picked fruits, excluding dried varieties.
10. Fresh vegetables that are either unprocessed or in a chilled state.
11. Fresh sweet potatoes, processed only through basic handling.
12. Fresh spices that are not ground or crushed.
13. White crystalline sugar derived from sugarcane without added ingredients.
[Gambas:Video CNN]
(fby/agt)
How will the new VAT increase from 11% to 12% impact everyday consumers in Indonesia?
**Interview: Navigating the New VAT Landscape in Indonesia**
**Host:** Welcome to our special segment on Jakarta’s latest tax developments! We’re diving into the recent increase in the Value Added Tax, raising from 11 percent to 12 percent. Joining us today is our expert guest, Dr. Siti Rahma, an economist with keen insights into Indonesia’s tax policies. Thank you for being here, Dr. Siti!
**Dr. Siti Rahma:** Thank you for having me! I’m excited to discuss this topic, albeit with a slight sense of humor given the circumstances.
**Host:** Absolutely! So, let’s get right into it. The government’s decision to raise the VAT has been met with mixed reactions. What can you tell us about the reasoning behind this move?
**Dr. Siti Rahma:** The government is adamant about maintaining the health of the State Budget, especially in light of global financial uncertainties. Finance Minister Sri Mulyani emphasized that this increase is necessary to ensure the budget acts as a buffer during economic downturns. It’s like saying, “We’re preparing for the storm, so hold on to your umbrellas—and your cash!”
**Host:** That’s a vivid analogy! While it may be necessary, what about the citizens? How are they responding to this increase?
**Dr. Siti Rahma:** There’s definitely a sense of frustration among the public. Many feel the pinch of rising costs already, and a tax hike can seem like the government is adding insult to injury. But some goods, like basic necessities, remain exempt from VAT. So it’s not all doom and gloom—there is recognition of the need for essential goods to remain affordable.
**Host:** Speaking of those essentials, can you break down what exactly will be exempt from this new VAT?
**Dr. Siti Rahma:** Sure! Basic necessities such as freshly picked fruits and vegetables, unprocessed meat, eggs, and dairy products are VAT-free. The government is keen on ensuring that citizens can still afford healthy food options, even while they’re tightening their belts in other areas.
**Host:** It sounds like there’s a silver lining for consumers! But, Dr. Siti, many people might wonder, will this tax hike really make a significant difference to the state budget?
**Dr. Siti Rahma:** Yes, it can! This additional revenue is projected to support public services and infrastructure projects, which ultimately benefit citizens. However, the challenge will be translating this tax revenue into tangible improvements. If the public doesn’t see these benefits, the trust in government decisions may wane.
**Host:** A valid point! What advice would you give to citizens navigating this new tax landscape?
**Dr. Siti Rahma:** My advice would be to stay informed. Understand which goods are still exempt and budget accordingly. Also, when possible, lend your voice to public discussions about tax policies; citizen feedback can help steer future fiscal decisions.
**Host:** Wise words, Dr. Siti! Before we wrap up, do you think there’s any room for the government to reconsider this decision in the future?
**Dr. Siti Rahma:** Certainly! Public opinion is powerful. If there’s significant backlash, or if the economy shifts, the government may reconsider. Taxation isn’t set in stone; it’s a constantly evolving policy influenced by numerous factors.
**Host:** Thank you for sharing your invaluable insights today, Dr. Siti. It seems we all need to keep a close eye on our wallets as the new VAT takes effect!
**Dr. Siti Rahma:** Thank you for having me! And remember, laughter truly is the best tax deduction—so find joy even in these taxing times!
**Host:** A fitting note to end on! Thank you to our viewers for joining us, and stay tuned for more updates on important developments in Indonesia.
