News Directory

Staple food items Tax Exempt

JAKARTA, KOMPAS.com - Starting Thursday (1/4/2010) yesterday, the staple goods such as meat, eggs, milk, vegetables and fruits, are not subject to Value Added Tax (VAT).

This provision is carried over the enactment of Law Number 42 Year 2009 regarding the Third Amendment to Law Number 8 Year 1983 regarding Value Added Tax and Goods and Services Sales Tax on Luxury Goods or Value Added Tax Act, starting today.

Thus described the Director General of Taxation Mochamad Tjiptardjo, on the sidelines of a press conference, at the office, Jakarta, Thursday (1/4/2010). "Starting today, there was an increase of goods and services that are not subject to VAT or non taxable goods, among other groups of basic commodities," said Tjiptardjo.

According to him, this is applied in the context of fulfilling the nutrition of the people of Indonesia with an affordable price.

In addition, the group of financial services such as financial services, including financing based on Islamic principles are also free of VAT.