Imported food free from tax

JAKARTA: Finance Minister Boediono has decided to exempt the value added tax (VAT) on some imported basic foods in a bid to ensure the supply of the basic needs to the people and to maintain social stability, a ministry statement said.

The statement, issued Wednesday, added that the ruling was effective beginning this month, and that importers who had paid the tax could ask for a refund.

The statement went on to say that the tax would be waived on rice, corn, sago, soybean, and salt.

The move came as the government is set to increase fuel prices this month, which has already triggered the price hike in some basic commodities. --JP