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09 September 2020

Government Spreads Tax Incentives, Fish Feed and also LNG are VAT Free!

Jakarta, CNBC Indonesia - The administration of President Joko Widodo (Jokowi) has officially added to the list of taxable goods (BKP) that are exempt from value added tax (VAT).
 
This decision is contained in Government Regulation (PP) 48/2020 concerning Amendment to PP 81/2015 concerning the import or delivery of certain strategic taxable goods which are exempted from the imposition of value added tax.
 
In the regulation, it is explained that the issuance of this regulation considers a number of things, one of which is legal certainty, increasing the electrification ratio, and accelerating the fulfillment of more efficient electricity needs.
 
"So it is necessary to make amendments to Government Regulation Number 81 of 2O15 concerning the Import and / or Delivery of Certain Strategic Taxable Goods which are exempted from the Imposition of Value Added Tax," wrote the regulation, as quoted by CNBC Indonesia, Monday (8/31 / 2020).

Article 1 paragraph 1 of this rule details BKP which is strategic in nature whose imports are exempt from PPN. Starting from seeds of agricultural goods, animal feed, fish feed, to liquified natural gas (LNG).

With this policy, the number of BKP that is exempt from PPN collection is currently 10 BKP. Meanwhile, certain BKPs that also get VAT exemption facilities become 12 BKPs.

This regulation was signed by Jokowi on August 24, 2020, and promulgated on the same date.
 
Source : CNBC Indonesia