TEMPO.CO, Jakarta - Finance Minister Sri Mulyani finally spoke about the government plan on imposing added-value tax (PPN) on staple foods (Sembako) following the public backlash for the past couple of days.

The former World Bank managing director, in a meeting with the House of Representatives (DPR) Commission IX legislators on Wednesday, said she is unable to provide a public explanation from the ethics point of view as it has not been discussed with the House.

She insisted that the staple foods added-value tax is a government plan that should not have been publicly known before President Joko “Jokowi” Widodo presents it to the Parliament in person.

“Because it is a public document that we expressed to the DPR through a Presidential Letter. The situation has turned a little awkward since the document has been exposed because it has already been sent to the DPR too,” said Sri Mulyani in the DPR meeting on June 9.

However, she spilled a number of aspects regarding the controversial tax plan:

1. Sri Multani assures that the staple food PPN has not been imposed yet and apologizes to the Parliament for letting them be bombarded by questions from constituents. “It was blown up into something that does not consider the current situation even though our focus remains on economic recovery,” she said.

2. The PPN policy will be discussed with the House Commission XI members or legislators before it is imposed. She insists that it is impossible for the government to introduce a policy without discussing it with legislators.

3. The public has enjoyed a number of tax incentives from the government such as the annulled PPh 21 and other tax incentives. She explains that the plan needs to be improved by taking inputs from a large portion of society directly affected by the plan.

4. Fulfilling the principle of justice. Sri Mulyani’s special staffer Yustinus Prastowo explains that the government plans to change the added-value tax scheme for staple food into a multi tariff for the sake of justice. The PPN paid will refer to the unique income and public consumption pattern. For example, the middle-lower income society should be taxed with a lower tariff compared to the upper-income group. “This is fair isn’t it? The people who are [financially able] subsidize those less fortunate,” he said.

Read: Sri Mulyani on Staple Food Tax: We Still Focus on Economic Recovery

FRANCISCA CHRISTY ROSANA | CAESAR AKBAR | BISNIS