Confusion over 10 percent Tax on Food and Beverages
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Eating out just got cheaper. The 10 percent value-added tax on food and beverages has been abolished by the government and should not be paid, consumer protection groups said on Tuesday. The industry, however, thinks differently. (JG Photo/Yudhi Sukma Wijaya)
Confusion over 10 percent Tax on Food and Beverages
Though the government officially abolished the 10 percent value-added tax of food and beverages on April 1, businesses are still continuing to impose the additional charge, the Indonesian Consumer Protection Foundation warned on Tuesday.
Tulus Abadi, from the foundation, also known as the YLKI, blamed the government for not informing the public about the new law.
“If consumers are well informed about it, they can complain to the restaurants for still charging the tax,” Tulus told Okezone.com.
The government adopted Law No. 42, 2009, on VAT and Sales Tax on Luxury Goods (PpnBM) last year. It states that beginning April 1 this year, VAT should not be paid on commodities such as food and beverages sold in hotels, restaurants or stalls, whether it be dine-in or takeout.
Thomas Dharmawan, from the the Indonesian Food and Beverage Association (Gapmmi), said, however, that restaurant owners still had the right to charge the VAT because the government had not issued a government regulation (PP) regarding the implementation of the law.
“Most of us are waiting for the PP because we need it before we can apply the new law,” he told Okezone.com.
Tulus, however, disagreed.
“When the government said that VAT had been erased, restaurant owners should not charge consumers anymore because it’s considered illegal. Besides, who will they pay the VAT to because the law has changed,” he said.
David ML Tobing, chairman of Adamsco Public Consumer Protection Institution (LPKSM), told Kompas.com that, “The 10 percent tax could be small in amount but that’s not the point. The important thing is, consumers have the rights to complain if they are still charged with the tax that no longer exists.”
Eating out just got cheaper. The 10 percent value-added tax on food and beverages has been abolished by the government and should not be paid, consumer protection groups said on Tuesday. The industry, however, thinks differently. (JG Photo/Yudhi Sukma Wijaya)
Confusion over 10 percent Tax on Food and Beverages
Though the government officially abolished the 10 percent value-added tax of food and beverages on April 1, businesses are still continuing to impose the additional charge, the Indonesian Consumer Protection Foundation warned on Tuesday.
Tulus Abadi, from the foundation, also known as the YLKI, blamed the government for not informing the public about the new law.
“If consumers are well informed about it, they can complain to the restaurants for still charging the tax,” Tulus told Okezone.com.
The government adopted Law No. 42, 2009, on VAT and Sales Tax on Luxury Goods (PpnBM) last year. It states that beginning April 1 this year, VAT should not be paid on commodities such as food and beverages sold in hotels, restaurants or stalls, whether it be dine-in or takeout.
Thomas Dharmawan, from the the Indonesian Food and Beverage Association (Gapmmi), said, however, that restaurant owners still had the right to charge the VAT because the government had not issued a government regulation (PP) regarding the implementation of the law.
“Most of us are waiting for the PP because we need it before we can apply the new law,” he told Okezone.com.
Tulus, however, disagreed.
“When the government said that VAT had been erased, restaurant owners should not charge consumers anymore because it’s considered illegal. Besides, who will they pay the VAT to because the law has changed,” he said.
David ML Tobing, chairman of Adamsco Public Consumer Protection Institution (LPKSM), told Kompas.com that, “The 10 percent tax could be small in amount but that’s not the point. The important thing is, consumers have the rights to complain if they are still charged with the tax that no longer exists.”