Market Traders Strongly Oppose Govt Plan to Tax Staple Food

TEMPO.CO, Jakarta - The Indonesian Traditional Market Traders Association (IKAPPI) voiced its protest against the government’s plan to impose added-value tax (PPN) on sembako or staple foods and calls for a stop on the potentially put them out of business. 

“We strongly protest against such attempts. And as an association of traditional market traders we will protest to President Jokowi so that the Ministry does not attempt to conduct things that complicate the livelihood of traditional market traders,” said IKAPPI chairperson Abdullah Mansury in a written statement on June 9.

He argues that the government must consider a plethora of aspects before introducing policies, especially if those plans may affect the economy that is already hit hard by the pandemic. 

The IKAPPI chairperson claims 50 percent of its members have experienced income losses and argues that the government has failed to stabilize food prices in the past months, moreover adding burden by planning to subject staple foods with added-value tax. 

Previously reported, the Indonesian government plans to subject staple food as objects of taxation which is planned to be included in the revised Law No.6/1983 on general provisions and tax procedures. 

So far, the government has not made its mind yet on which tariff will be introduced with alternatives ranging from 1 percent, 5 percent, and up to 12 percent. 

Read: Food Security at Risk as Govt Plans to Impose Tax on Staple Food

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