Indonesia's tax office defends proposed food tax

A registration officer at Menteng Dua tax office in Jakarta helps a taxpayer. - JP

JAKARTA (The Jakarta Post/ANN): The Taxation Directorate General has defended a draft to amend value added tax (VAT) rules that will levy taxes on staple foods and education services, arguing that the proposed changes will not place a burden on low-income households but make taxation more just for everyone.

Tax office spokesman Neilmaldrin Noor said the prevailing VAT scheme prevented the government from taxing consumption by upper-income households, as they were treated the same as lower-income households.