The good news is that we no longer have to pay a 10 percent value added tax added to our bill by the cafes or restaurants where we hang out. The House approved last year Law No. 42/2009 on Value-Added Tax and Sales Tax on Luxury Goods, which took effect April 1. However, restaurant owners believe they can still charge VAT because the government has not issued a regulation implementing of the law. Send us your opinion on whether a government regulation is needed to enact the clearly-written law.
PRO
It's time for businessmen to think of customers and abide by the law.
Fauzan Hisyam
Faculty of Social and Political Sciences
University of Indonesia
As a customer, it is good to know that there is no longer a 10 percent value-added tax imposed on restaurants and caf*s. It means lower prices for meals and beverages.
However, I still often see such tax listed on my bill at restaurants I frequent in around my campus and elsewhere.
Restaurant owners argue that there has not been any government regulation detailing the implementation of the law. It is just an excuse to avoid losing income.
Of course it will definitely be better if there is a government regulation, but it is a businessperson's obligation to abide by the law.
I think it is time for them to think about the rights of the customers. We feel that the price of food is now expensive. I'm sure businessmen have calculated their profits and that tax is no longer needed.
CON
VAT cut not essential, compensation for businessmen needed
Tantia Dian Permata Indah
Faculty of Economics
University of Indonesia
When the government adopted the law, they should have known that some kind of compensation would have to be paid to restaurant owners. No matter what, the owners are still businessmen who cannot be separated from profit.
I don't think the government's removal of the 10 percent value-added tax on restaurants is significant. It is not essential. It does not add or eliminate values.
Why? From the customer's point of view, the service tax is a burden. In some restaurants or cafes, we are charged a very high service tax yet the service is not satisfying.
I don't mind if the VAT tax stands. The government also relies on taxation. What is most important is that the businessmen do not lie to customers.
Next topic
The selection committee for the new Corruption Eradication Commission (KPK) chief will soon start its screening process. Among the candidates are professionals recommended for the post by a group of Indonesian rectors, including Jimly Asshiddiqie; former Constitutional Court chief and a current member of the presidential advisory council and Busyro Muqoddas; the Judicial Commission chief.
Send us your opinion (no more than 350 words) on what characteristics the new antigraft chief must possess what should be the new KPK chairman's priorities. The best responses will be published on July 25.
