KPBN News

Charged 10 Percent, Rubber Entrepreneurs Complain to Jokowi



The Presidential Regulation stipulates the imposition of a Value Added Tax (VAT) of 10 percent on agricultural and plantation commodities.
The request was delivered directly when the Gapkindo management met President Jokowi at the State Palace on Friday (24/6/2016).
`We urge that the VAT on plantation and agricultural products be reviewed. Because the 10 percent VAT is very heavy,` said Gapkindo Chairman Munarji Soedargo, after meeting Jokowi.
`We do not dream of being exempt from the VAT. We only request not to be charged VAT on plantation and agricultural products,` he said.
Munarji explained that the Presidential Regulation initially freed agricultural, plantation, livestock, and fishery products to be exported from the 10 percent tax.
However, in 2014, the Supreme Court through Supreme Court Decision Number 70 of 2014, decided to cancel part of the Presidential Regulation.
As a result, agricultural and plantation products that are exported are still subject to a 10 percent tax, while other sectors are not.
Munarji said that the exemption of agricultural and plantation commodities from VAT was not solely for the benefit of rubber businessmen. Rather, for rubber farmers.
`Everything we have said is for the smooth running of the rubber trade, which would benefit everyone, not only for actors like us. But for farmers,` he said.
So, what was Jokowi's response to the request?
Munarji said that the President fully understands the restlessness of stakeholders in the rubber industry.
`The President is very quick, earlier he thought about what the best solution was to help to find a win-win solution. That made us heartened because it was received well,` said Munarji.
The meeting between the Gapkindo management and the President was held at the State Palace. Coordinating Minister for Economic Affairs Darmin Nasution and Minister of State Secretary Pratikno were also present at the meeting.




Author
: Fabian Januarius Kuwado


Editor
: Bayu Galih



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