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December 18, 2024 | 05:19 pm
TEMPO.CO, Jakarta - The Head of the National Food Agency (Bapanas), Arief Prasetyo Adi, has refuted claims that premium rice will be subject to the 12 percent value-added tax (VAT) rate. “Rice, including premium rice, is not subject to VAT,” Arief stated to reporters during a meeting at the BPPT I Building in Central Jakarta on Wednesday, December 18, 2024.
Previously, Finance Minister Sri Mulyani Indrawati announced that the VAT hike would be levied on goods and services classified as luxury items. This policy is outlined in Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (UU HPP) and is scheduled to be implemented starting January 1, 2025.
The Finance Ministry has released a list of luxury goods and services subject to the increased VAT, which includes premium rice. However, Arief emphasized that rice, as a strategic commodity, is exempt from VAT. “The list does not include any strategic commodity items subject to VAT,” he clarified.
He added that the government is currently discussing the specific categories of rice that may be subject to the 12 percent VAT. “Perhaps special types of rice will be considered, but this is still under discussion,” he said.
Meanwhile, Coordinating Minister for Food Affairs Zulkifli Hasan declined to comment on the imposition of the 12 percent VAT on premium rice.
Other premium goods included in the list subject to the 12 percent VAT are premium fruits, premium meats such as wagyu and Kobe beef, premium fish such as salmon and tuna, and premium shrimp and crustaceans such as crabs.
For services, the list includes premium educational services, such as expensive and internationally standardized education programs, premium or VIP medical health services, and household electricity consumption with a power range of 3,500 to 6,600 VA.
In addition to the goods and services subject to the increased tax rate, the Finance Ministry has also released a list of basic goods and strategic services that will remain exempt from VAT. These include rice, meat, fish, eggs, vegetables, milk, sugar, educational services, health services, public transportation services, labor services, financial services, polio vaccines, and the use of clean water.
Oyuk Ivani S. contributed to the writing of this article.
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