The Indonesian government implemented VAT for certain agricultural products, including rice

Published 2022년 4월 8일

Tridge summary

The Indonesian government has implemented a Value Added Tax (PPN) rate of 1.1% for certain agricultural products, as stated in PMK Number 64 of 2022. However, Director of Taxation I of the Directorate General of Taxes, Hestu Yoga Saksama, clarified that rice is not included in the commodities subject to VAT. The types of rice that will be subject to VAT 1.1% are straw, husks, rice bran, bran, straw and compost. The government will set a rate of 1.1% of the selling price for the tax, which will be effective from April 1.

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Original content

Jakarta, CNBC Indonesia - The government has officially implemented a Value Added Tax (PPN) rate of 1.1% for certain agricultural products, one of the agricultural commodities subject to VAT is rice. This is stated in PMK Number 64 of 2022. Nevertheless, Director of Taxation I of the Directorate General of Taxes (DGT), Hestu Yoga Saksama, emphasized that in PMK 64/2022 regarding VAT on the Delivery of Certain Agricultural Products, rice is not included in the commodity subject to VAT. It is known that the types of rice that will be subject to VAT 1.1% as stated in PMK 64/2022 are straw, husks, rice bran, bran, straw and compost. "Rice is VAT-free, not including certain agricultural products in this PMK (PMK 64/2022)," Yoga explained to CNBC Indonesia, Thursday (7/4/2022). Yoga further explained that rice is included in the group of basic necessities that are needed by many people. "According to Article 16B of the Value Added Tax Law (VAT), the VAT facility is exempted," said Yoga. ...

Source: Cnbcindonesia