Tax Justice

The plan to tax food stalls at an annual rate of Rp60 million should be abandoned. Instead, raise the revenue threshold and invest the money in infrastructure.

December 15, 2010

The controversy over the plan by the Jakarta city government to apply a sales tax to food stalls, even after it was delayed, should come as no surprise. The delay—not cancellation—is like a snake in the grass: vendors know that the government’s plan to make them pay tax could reappear.

Value-added tax actually applies to all places that sell goods, including the small foodstalls known as warteg, with an income in excess of Rp60 million per

...

More Articles