This is a list of 13 products that are not subject to the 12 percent VAT increase from January 2025

Jakarta, CNN Indonesia —

The government will impose an increase Tax Value Added (PPN) from 11 percent to 12 percent starting next year.

This increase is in accordance with Law No. 7 of 2021 regarding the Harmonization of Tax Regulations (HPP).

Despite opposition, Finance Minister Sri Mulyani said there were no plans to postpone the VAT increase. He reminded that the APBN is an instrument of shock (shock absorber) the economy must be kept healthy.

“The health of the APBN must still be maintained because the APBN must function and be able to respond to events the global financial crisis. Countercyclical “We still have to protect it,” he said at the Commission XI Working Meeting, last Wednesday (13/11).

Even though VAT has increased to 12 percent, there are several goods and services that are not affected by this policy.

The details of this product are regulated in the HPP Law and Regulation of the Minister of Finance (PMK) No. 16 of 2017 regarding Basic Needs not subject to VAT.

List of goods and services not subject to VAT 12 in HPP Law Article 4A:

1. Food and drinks served in restaurants, hotels, stalls, restaurants and the like are subject to regional taxes and regional taxes according to statutory regulations in the area of ​​regional taxes and taxes. This includes food and drinks consumed or not on the premises and food and drinks delivered to catering or food service businesses

2. Money, gold bullion used for foreign exchange reserves and securities

3. Religious services

4. Arts and entertainment services, including all types of services performed by art and entertainment workers that are objects of regional taxes and regional taxes according to the provisions of laws and regulations in the area of ​​regional taxes and regional taxes.

5. Hotel services, namely room rental services or room rental services in hotels that are subjects of regional taxes and regional taxes according to statutory regulations in the area of ​​regional taxes and fees.

6. Parking space provision services, namely services for providing or managing parking spaces performed by parking space owners or parking space management entrepreneurs for parking space users who are subject to regional taxes and regional taxes according to statutory regulations in the area of ​​regional taxes and fees.

7. Services provided by the government in the context of running a government in general, including types of services related to service activities that can only be done by the government with its authority based on statutory regulations.

8. Catering or catering services, that is all food and beverage catering service activities that are objects of regional taxes and regional taxes according to statutory regulations in the area of ​​regional taxes and taxes.

List of goods not subject to VAT 12 in PMK 116/2017:

1. Rice and grain: flaked, split, polished or polished or not, half-milled or completely milled, broken, groats, salt suitable for adding

2. Corn: whether or not shelled, including husks, broken, groats, except seeds

3.Sago: sago pith (sago juice), flour, powdered flour and coarse flour

4. Soybeans: skin, whole and broken, plus seeds

5.Edible salt: iodized or not, including table salt and denatured salt for consumption or basic needs

6. Meat: fresh from animals and poultry with/without bones that has not been processed, frozen, canned, chilled, salted, pickled or preserved in other ways

7. Eggs: not processed, salted, cleaned, or preserved, except for seeds

8. Dairy milk: which is heated or cooled and does not contain sugar or other ingredients

9. Fruits: freshly harvested and through the process of washing, peeling, sorting, cutting, slicing, grading, except for drying

10. Fresh vegetables harvested, washed, drained, frozen, stored at low temperature, or chopped

11. Sweet potatoes: fresh, during the process of washing, peeling, sorting, cutting, cutting or grading

12 Fresh spices, dried, and not crushed or ground

13. Crystallized white sugar from cane sugar for consumption without added coloring or flavoring ingredients.

[Gambas:Video CNN]

(fby/agt)