No tax for staple foodstuffs

Staple foodstuffs will be exempted from value added tax in a bid to provide affordable healthy foods for Indonesians, according to the newly endorsed law on value added tax and luxury tax.

The law, endorsed by the House of Representatives on Wednesday, stipulates that fresh meats, fresh eggs, fresh milks, fresh vegetables and fresh fruits will not be subject to value added tax.

The law is expected to be effective starting on Apr. 1, 2010, Finance Minister Sri Mulyani Indrawati said before the House.

Under existing regulations, staple foodstuffs are exempted from value added tax based on a government regulation.