THE EFFECT OF THE FOOD TAX ISSUE

SUPPORTING LECTURER : Nurcahyaning Dwi Kusumaningrum S.E

Arranged by Group 3

Muhammad Amantono (220903101034)

Nanda Silvia Eka D (220903101044)

Nararia Maywana Putri M (220903101051)

Marshanda Clesyifa (220903101054)

Hany Prilianti (220903101056)

Sinta Aprilia Putri (220903101057)

DIII TAXATION STUDY PROGRAM

FACULTY OF SOCIAL AND POLITICAL SCIENCES
UNIVERSITY OF JEMBER
2022
 FOREWORD

Praise be to Allah SWT who is almighty for His blessings and guidance to all of us for blessing
us so that we can complete this paper in order to fulfill the group assignment for the English
course with the title “The Effect of The food Tax Issues”.
We are very grateful to the drafting group team who have participated in the making of this
paper, hopefully the paper that we make and we don’t forget to say thank you to Mrs.
Nurcahyaningrum Dwi Kusumaningrum S.E.,M.A. As a lecturer in the field of English studies
from the Faculty of Social and Political Sciences who has guided us at the University of
Jember.
Meanwhile, if the writing of this paper is not perfect, we as the authors apologize profusely,
suggeestions and criticsms are expected to support the succes of this paper. Hopefully this
paper can be useful, especially for readers, both lecturers and other students at the University of
Jember.

Jember, 29 Agustus 2022

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Group 3

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 TABLE OF CONTENS

Contents
FOREWORD...................................................................................................................................................i
TABLE OF CONTENS.....................................................................................................................................ii
CHAPTER 1 INTRODUCTION.........................................................................................................................1
1.1. Background.....................................................................................................................................1
1.2 Problem Formulation......................................................................................................................1
1.3 The purpose and benefits of writing...............................................................................................2
1.3.1 Purpose of writing.................................................................................................................2
1.3.2 Benefit of writing...................................................................................................................2
CHAPTER 2 THEORY BASIS...........................................................................................................................3
2.1 Definition of Tax...............................................................................................................................3
2.2 Tax Collection System.....................................................................................................................3
2.3 Tax Function....................................................................................................................................4
CHAPTER 3 DISCUSSION..............................................................................................................................5
3.1 Application of VAT Policy.................................................................................................................5
3.2 Provision of Basic Food in Tax Issues...............................................................................................5
3.3 The Government's Efforts to Optimize the Staple Food Tax............................................................6
CHAPTER 4 CONCLUSION.............................................................................................................................7
4.1 Conclusion........................................................................................................................................7
4.2 Advice...............................................................................................................................................7
DAFTAR PUSTAKA.......................................................................................................................................8

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 CHAPTER 1
INTRODUCTION

1.1. Background
The state is likened to a household, so in meeting household needs such as food, shelter, and
clothing needs. The state needs a source of funds or income to be able to fulfill this. Indonesia
has an orientation to create the welfare of its people, this is based on the fourth paragraph of the
Preamble to the 1945 Constitution, namely "to promote general welfare for the sake of social
justice for all Indonesian people". Taxes are a means for citizens to cooperate with the state to
accelerate development in various sectors, such as the infrastructure security sector needed by
the people.
The government's plan to impose a Value Added Tax (PPN) rate on basic necessities is stated in
the fifth revision of Law Number 6 of 1983 concerning general provisions and taxation
procedures (RUU KUP), general provisions and taxation procedures are formal laws containing
regulations regarding the procedures for the implementation of tax collection by the state. The
public has recently been stirred up by the issue of the imposition of a basic food tax which has
created a dispute between the lower and upper classes.

1.2 Problem Formulation

1. Is it important for the government to create a PPN policy program on the tax evasion of
worship?
2. How is the government's efforts to provide sufficient basic food ingredients to meet the
needs of the community during the Covid-19 crisis?
3. What needs to be done by the government to restore conditions so that there is no basic
food tax in Indonesia?

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 1.3 The purpose and benefits of writing
1.3.1 Purpose of writing
1. Describe the issue of food tax issues in the covid-19 era.
2. Reviewing the right solution to solve the problem of the basic food tax.
3. To find out the current problems regarding the issue of the basic food tax.

1.3.2 Benefit of writing

1. To get an understanding of the problem of worship tax.
2. To better understand the problems that occur in the community's environment
regarding the issue of worship taxes.
3. To develop a field of reading that has been learned before.

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 CHAPTER 2
THEORY BASIS

2.1 Definition of Tax

In fact taxes are people's contributions to the state treasury based on the
law (which can be enforced) without remuneration services (counter achievements)
that can be directly shown and used to pay general expenses. In simple terms, taxes
function as a source of finance in having aregulating function.
According to Rochmat Soemitro (1992), tax is the transfer of wealth from the
people to the state treasury to finance routine expenditures and the surplus is
used for public saving, which is the main source for financing public investment.
Taxes themselves can be grouped into:
1. Taxes based on the group, namely:
a. Direct taxes, namely taxes that must be borne by the taxpayer and cannot
be charged to anyone. Example: Income Tax (PPh). Income Tax is borne
by the parties who earn the income.
b. Indirect tax, namely this tax can be charged or delegated to other people.
This tax is collected incidentally, that is, when it is determined by law.
Example: Value Added Tax (VAT). VAT is levied because there is an
added value to taxable goods or services
2. Taxes based on their nature are:
a. Subjective Taxes, namely taxes that take into account the condition of the
taxpayer so that the determination of the amount of tax must be based on
objective reasons related to tax capability. For example: marital status, the
number of dependents included in the Non-Taxable Income (PTKP).
b. Objective taxes, namely taxes whose collection stems from the object,
whether in the form of objects, circumstances, actions, or events that occur
in the country. Example: Value Added Tax (VAT) is determined based on
the amount of consumption of taxable goods or services.

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 2.2 Tax Collection System
According to Mardiasmo (2003), the tax collection system in Indonesia is as follows:

a. Official Assessment System, namely a tax collection system that gives

authority to the government (fiskus) for the purpose of determining the
amount of tax owed by taxpayers. Its characteristics include the authority
to determine the amount of tax payable at the tax authorities. Taxpayers
are passive. Tax payables arise after the tax assessment letter is issued by
the tax authorities.
b. Self Assessment System, namely a tax collection system that has given
authority to taxpayers to determine for themselves the amount of tax
payable. This system also has characteristics, among others: the authority
to determine the amount of tax owed to the taxpayer himself. Active
taxpayers, starting from calculating, depositing, and self-reporting the
taxes owed.
c. With Holding System, namely a system of tax collection that gives its
authority to a third party, (not the tax authorities and not the taxpayer
concerned), to determine the amount of tax that has been owed by the
taxpayer. Its characteristics are that the authority for the amount of tax
payable lies with third parties, parties other than the tax authorities, and
taxpayers.

2.3 Tax Function

According to Mardiasmo, 2009 the tax function is divided into two, namely:

a. Budgetair function, namely a tax that functions as a source of funds intended

for the government so that it can be used to finance state expenditures.
b. Regulatory function, namely tax is a measuring tool that functions to regulate
or implement government policies in the economic, social, and development
fields.

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 CHAPTER 3
DISCUSSION

3.1 Application of VAT Policy

The Indonesian government has just passed Law Number 7 of 2021 concerning the
Harmonization of Tax Regulations (HPP), the contents of which have sparked a lot
of public controversy .In this law, the government harmonizes the existing tax
regulations in Indonesia by adding and subtracting them. The discussion on changes
to the tax law has started since early 2021, which was originally proposed by the
government under the name of the general taxation law (KUP), according to the
government, which is aimed at reforming the tax system in Indonesia in order to
achieve justice. Some interesting points in Law Number 7 of 2021 are changing the
percentages and provisions in the Tax Law Income (PPh), and changing the
provisions in the Value Added Tax Law(VAT) such as the percentage of VAT which
will increase to 11% in 2022 and 12% in 2025.
Regarding the application of VAT on staples, despite the controversy and criticism
from observers, the government still provides an opportunity to apply taxes to basic
commodities. This is reflected in Article 4A paragraph 2 of the HPP Law which
eliminates mining products/drilling products that are taken directly from the source
as well as basic necessities that are needed by many people as types of goods that are
not subject to VAT.

3.2 Provision of Basic Food in Tax Issues

The government is desperate to impose a value added tax on basic commodities
such as rice and other basic necessities. The plan to impose a value added tax for
basic needs, including rice and basic necessities, is accommodated in the Draft Law
on General Provisions and Tax Procedures (RUU KUP). The risk is getting bigger
in line with the abolition of a number of social assistance programs for basic needs
this year and next year. The parent of wholesaler cooperatives (inkoppas) said that
the imposition of VAT on the categories of shirataki rice and wagyu meat will help
raise the prices of similar basic commodities to improve economic stability public.
Director of the Center of Economic and Law Studies Bhima Yudhistira assesses
that the application of VAT for basic needs that is not balanced with social
assistance will increase the poverty rate. This is because foodstuffs account for 73.8
percent of the total component of the poverty line. According to him, the imposition
of a value added tax will automatically raise the selling price of basic necessities,
be it rice or other basic necessities. The groups most affected by this policy are the
poor. Bhima also added that another risk that the government also needs to pay
close attention to in formulating this policy is an uncontrolled spike in inflation
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for basic needs. For

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 this reason, the government must rethink the problem of the policies they take so as
not to harm the poor. What is meant by basic ingredients are in accordance with
those stipulated in the Minister of Finance Regulation (Minister of Finance
Regulation) Number 116/PMK.010/2017, namely rice and unhulled rice, sugar,
milk, eggs, spices, corn, sago, soybeans, meat, salt. , fruits, vegetables, and sweet
potatoes. Meanwhile, VAT is a tax levied on the delivery of Taxable Goods and/or
Taxable Services. This tax is collected using a tax invoice. All services are in
principle subject to VAT, except for services that are exempt from VAT under the
VAT Law.

3.3 The Government's Efforts to Optimize the Staple Food Tax

The government has implemented several policies to control the inflation
ratein several ways, namely:

1. Increasing the supply of food by modernizing technology and land

processing methods as well as increasing the area of agricultural land to
increase the rate of food production in order to create food self-sufficiency.
2. The cotton subsidies on agricultural production methods aim to improve the
welfare of farmers in order to produce agricultural products at affordable
prices by all layers of society.
3. Reducing the APBN Deficit by reducing the budget deficit by emphasizing
excess demand.
4. Increasing the ability of aggregate supply by reducing the output gap
through improving the quality of labor resources, modernizing production
technology, and developing the national manufacturing industry so that its
performance can improve.

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 CHAPTER 4
CONCLUSION

4.1 Conclusion
The government has taken various ways to control the problems that are
increasingly occurring, but the community insists on rejecting the policies issued by the
government on the grounds of harming the lower classes of society. For this reason, the
government withdrew its intention and intends to replace the policies taken previously
and replaced with new policies in the form of taxes. Sales of luxury goods (PPNMB)
with the aim of preventing upper-class people from hoarding basic necessities for their
own needs. In the end, the lower-class people agreed to the policy on the grounds that it
was profitable for them.

4.2 Advice
As Indonesian people, we should work together to help brothers and sisters in need
for the welfare of the Indonesian people, not on the contrary, being more concerned
with ourselves than the social interests of the community.

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 DAFTAR PUSTAKA

Dahono, Y. (2021, juni 18). Soal PPN Sembako, Ini Pandangn Dani Lukman. Retrieved from
https://www.beritasatu.com/ekonomi/788949/soal-ppn-sembako-ini-pandangan-dani-lukman

Hidayah, K. (2020). Pokok-Pokok Hukum Pajak. malang: setara press.

Indonesia, C. (2021, juni 10). Melihat Pungutan PPN 'Sembako' di Beberapa Negara. Retrieved from
https://www.cnnindonesia.com/ekonomi/20210610161433-532-652773/melihat-pungutan-ppn-
sembako-di-beberapa-negara

Indonesia, C. (2021, september 14). Pro Kontra Wacana Pajak Sembako. Retrieved from
https://www.cnnindonesia.com/ekonomi/20210914161100-532-694181/pro-kontra-wacana-
pajak-sembako

Sembiring, L. J. (2021, juni 16). Melihat Kembali Asal Muasal Sembako Kena Pajak, Simak! Retrieved
from https://www.cnbcindonesia.com/news/20210616153018-4-253629/melihat-kembali-asal-
muasal-ide-sembako-kena-pajak-simak

Sembiring, L. J. (2021). Meminta Kembali Asal Muasal Ide Sembako Kena Pajak, Simak!

Sembiring, L. J. (2022, maret 16). Siap-siap Bansos! Sembako Ini Bakal Kena Pajak Bulan Depan.
Retrieved from https://www.cnbcindonesia.com/news/20220316102358-4-323186/siap-siap-
boncos-sembako-ini-bakal-kena-pajak-bulan-depan/amp

Sembiring, L. J. (2022, maret 16). Siap-siap Bansos! Sembako Ini Bakal Kena Pajak Bulan Depan.
Retrieved from https://www.cnbcindonesia.com/news/20220316102358-4-323186/siap-siap-
boncos-sembako-ini-bakal-kena-pajak-bulan-depan/amp

Septriadi, D. (2022). konsep dan studi komparasi pajak pertambahan nilai. Retrieved from
https://perpajakan-id.ddtc.co.id/publikasi/ebooks/konsep-dan-studi-komparasi-pajak-
pertambahan-nilai

Soemitro, R. (1998). Asas dan Dasar Perpajakan. jakarta: Refika Adiatama.

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 ATTACHEMENT
Value Added Tax (VAT) will start to increase. The current VAT rate of 10% will be 11% starting April 1,
2022. The increase in the VAT rate is contained in Law number 7 of 2021 concerning Harmonization of
Tax Regulations. This regulation also mentions a higher VAT rate increase to 12% on January 1,
2025.With this increase in VAT, it means that the prices of goods ranging from household needs that are
widely available in supermarkets to the need to buy clothes and eat at restaurants will be increasingly
expensive.

With this increase in VAT, it means that the prices of goods ranging from household needs that are
widely available in supermarkets to the need to buy clothes and eat at restaurants will be increasingly
expensive.There are several items that are excluded from the imposition of VAT, namely basic
necessities. These basic goods include rice, chili, corn, salt, sago, to eggs and fruits which are sold in
traditional markets. However, if basic food items are sold in supermarkets, they will be subject to VAT.
that must be spent by consumers will be more expensive. Because, in transactions the VAT burden is
imposed on the final consumer or buyer.In addition, the government stipulates special tariffs for certain
goods and services. This tariff is the final tariff with a value ranging from 1% to 3%, which will then be
regulated in more detail in the Minister of Finance Regulation (PMK).

•> Legal Basis for VAT

The legal basis for VAT in Indonesia began to emerge in 1983. There have been several changes to the
law with various considerations, such as changing the tax collection model to make it simpler, and the
principle of justice for the community. Before using the VAT system.

1. Law No. 8/1983 Law no. 8 of 1983 concerning Value Added Tax and Sales Tax on Luxury
Goods was created to regulate VAT and PPnBM (Sales Tax on Luxury Goods) which was ratified
on April 1, 1985.

2. Law Number 18 of 2000

After Law no. 8 of 1983, the second amendment appeared, namely Law Number 18 of 2000
concerning the Second Amendment to Law Number 8 of 1983 concerning VAT on Goods and
Services and PPnBM. This change is to create an appropriate tax system for the community, as
well as to increase state revenues.

3.Law Number 42 Year 2009

The third amendment is Law no. 42 of 2009 concerning Value Added Tax of Goods and Services
and PPnBM. To complement the shortcomings of the previous Value Added Tax Law, this law
aims to provide legal justice and security for the state and society with a much simpler tax
system.

4. The latest in HPP Law No. 7 of 2021 Legislation

Tax laws and regulations regarding VAT are contained in the HPP Law Number 7 of 2021
concerning Harmonization of Tax Regulations.

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