Agricultural sector hunted VAT

Agricultural sector hunted VAT
The price of livestock products sensitive to price increases
Lunch 2 days ago, after the lunch hour, six of agriculture [including farms], seated around a round table in a room five-star hotel in Jakarta. "We want to share," said one of the participants 'round table' was. Then, there was dialogue and said the key word VAT. Despite the occasional joking, they often frowned. "The imposition of VAT would lead to lower product quality. Protein intake of the people will be disturbed, "said Chairman Mushroom Indonesian Employers Association (GAPPI) Anton J. Chopsticks. Now, the attention of the actors in the agricultural sector, entrepreneurs and farmers / farmer-directed to the Parliament building. There, being discussed and PPnBM VAT bill. Reportedly, the bill was already in the hands of the House Committee. In the meeting of the working committee (the Committee) House of Representatives agreed with the Directorate General of Taxes additional types of staple goods that are VAT exempt meat, milk, eggs, vegetables and fruits. As, in the initial draft and PPnBM VAT bill, staple component of VAT exempt only rice and grain, corn, sago, soy, salt, either iodized or not iodized. Components are the same as in the Law number 18/2000 on VAT and the prevailing PPnBM January 1, 2001.
Triggers struggle about VAT, initially, in the era of the Director General of Taxation, Nasution Nasution. At that time, it [Darmin] proposed that agricultural value added tax (VAT) and is no longer excluded. "So we want to convey that this [agricultural] should not be excluded because if the VAT excluded many losses," he said. According to him, the absence of VAT for agricultural products or zero percent VAT to imports of agricultural products are also not subject to VAT. "Because there are international rules that say, if a country does not charge VAT for agricultural products, we are forbidden to put VAT on imported products," he said.

According to him, in terms of the imposition of state income tax on agricultural products is not too significant, but the imposition of VAT on agricultural products will encourage pengelahan industrial raw materials of agricultural products.

"From the additional revenue that has no meaning, only managing industrial raw materials can be developed," he said.

Stakeholder concerns agriculture, increasingly rising. Members of the House Commission XI, Dradjad Hari Wibowo agreed with Nasution. VAT Exemption for some agricultural commodities such as eggs, meat, milk, fruits, and vegetables benefit similar products from outside [the country], so that more flooding is feared the domestic market.

Affect producers

According to him, the additional components of agricultural products are VAT exempt, which was approved by the House Committee, would affect domestic producers of commodities for import goods that would be much cheaper.

"Poor farmers fruit, cattle, dairy, meat, and eggs. Difficult for them to compete with outsiders, "he said responding to the House Committee agreed on the additional components are released staple VAT.

VAT exemption rules for staple component of meat, milk, eggs and fruits, he says, simply set out in government regulation (PP).

Fret not reduced despite the Committee Chairman and PPnBM VAT bill, said the increase Febyanthy Vera staple component of VAT exempt and PPnBM intended to allow public access to consume more easily. "They [local producers and importers] do have to compete. Returned to the choice of living people, whether to consume staple of local or imported, "he said.

The reason is, there is a statement saying the government should maintain the original ajuan that does not change the main material components VAT exempt, or the same as in the VAT Act and PPnBM before.

"VAT can not be imported tools obstacle," said Anton.

The statement was agreed by the Chairman of Indonesian Mushroom Society Forum (FMPI) Don P. Utoyo. According to him, if you want to suppress use of import tariffs and nontariff barriers barrier. "The imposition of VAT, contrary to the three pro-government programs, pro growht, poor, job," he said.

Chairman of APPI or Indonesia Feed Producers Association (formerly the Joint Food Cattle Company / GPMT) FX Sudirman said the VAT impact on prices of feed and animal origin products. "The price of livestock products sensitive to the increase," he said.