‘Sembako’ Tax

If in the short term the implementation of VAT on basic goods cannot be carried out, it is very possible that the fiscal deficit cannot be returned to below 3 percent in 2023 as mandated by law.

Kompas/Priyombodo

A Prasetyantoko

There are only two certainties in life: death and taxes. Paying taxes is destiny. Therefore, the tax policy can become the most complicated, dilemmatic and sometimes, controversial economic issue. That\'s what has happened in the debate surrounding the plan to impose Value Added Tax (VAT) on basic goods, such as rice and sugar—called the “Sembako Tax”—as well as key services, such as education and health.

The government has submitted the draft on the revision of Law on General Provisions and Tax Procedures (KUP Bill ) as the fifth amendment to Law Number 6 of 1983, which is included in the 2021 National Legislation Program (Prolegnas). The proposed revision has not been officially discussed, but has been widely circulated in the public.