Gov`t Scraps VAT for Imported Livestock
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Bandung - West Java Livestock Agency head Doddy Firman Nugraha said that the government had removed Finance Minister Regulation No. 267/2015 imposing a 10 percent value-added tax (VAT) on imported livestock.
“The price [of livestock] should have returned to normal,” Doddy told Tempo on Friday, January 22, 2016.
The enforcement of the 10 percent VAT on imported cattle had caused beef prices to soar. Doddy said the highest selling price of beef in West Java had reached Rp 150,000 (US$10.9) per kilogram. Doddy revealed that he gathered a number of stakeholders, including vendors, cattle fattening companies, and related agencies to discuss the price increase at his office.
According to Doddy, West Java’s dependency on imported beef had caused the price to climb as a result of the enforcement of the regulation. Currently, imported beef accounts for 70 percent of beef supplies in the West Java market.
Doddy said, the meeting to discuss the regulation went tough, but it was closed with information from the Coordinating Economic Ministry that the regulation had been scrapped. Doddy said that with the regulation removal, there would be no reason for vendors to increase beef prices.
Doddy revealed that the Livestock Agency would conduct a market operation to check on beef prices at slaughterhouses and consumer level.
Earlier, West Java Governor Ahmad Heryawan said that he could not make a decision in relation to the increasing beef price due to the enforcement of the regulation.
“Basically it’s central government’s policy that we must comply with. But if there’s any controversy, we must provide an input to adjust the policy. We will look at the issue,” he said in Bandung on Friday, January 22, 2016.
AHMAD FIKRI